If the upper limit on misstatement exceeds the tolerable misstatement,the auditor could not initially conclude that the account balance is fairly recorded.

Question

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If the upper limit on misstatement exceeds the tolerable misstatement, it indicates that the account balance may not be fairly recorded. The auditor would need to perform additional audit procedures and potentially adjust the balance before being able to conclude that the account is fairly stated.

If the Upper Limit on Misstatement Exceeds the Tolerable Misstatement,the