In a classical variables sampling application,if the _____ exceeds the maximum difference between the recorded balance and any point within the precision interval,the auditor would decide to _____ the account balance as fairly stated.
A)Sample estimate; accept.
B)Sample estimate; reject.
C)Tolerable misstatement; accept.
D)Tolerable misstatement; reject.

Question

Quizplus · Accepted Answer

If the tolerable misstatement exceeds the maximum difference between the recorded balance and any point within the precision interval, the auditor would accept the account balance as fairly stated because the potential misstatement is within acceptable limits.

In a Classical Variables Sampling Application,if the _____ Exceeds the Maximum