The auditor's sample would indicate that the client's account balance is fairly stated when the _______________________ is less than the ______________________.
A) upper limit on misstatement, tolerable misstatement.
B) actual misstatement, tolerable misstatement.
C) tolerable misstatement, upper limit on misstatement.
D) tolerable misstatement, actual misstatement.

Question

Quizplus · Accepted Answer

The auditor's sample would indicate that the client's account balance is fairly stated when the upper limit on misstatement is less than the tolerable misstatement. This means that the potential error in the account balance is within acceptable limits.

The Auditor's Sample Would Indicate That the Client's Account Balance