When the _______________________ exceeds the ______________________,the audit team risks incorrect acceptance.
A) upper limit on misstatement, tolerable misstatement
B) tolerable misstatement, expected error
C) tolerable misstatement, upper limit
D) upper limit, expected error

Question

Quizplus · Accepted Answer

The audit team risks incorrect acceptance when the upper limit on misstatement exceeds the tolerable misstatement, as it indicates that the potential misstatement in the population is greater than what the auditor is willing to accept.

When the _______________________ Exceeds the ______________________,The Audit Team Risks Incorrect

When the _ Exceeds the ,The Audit Team Risks Incorrect