If the unadjusted difference resulting from projecting the error rate to the account balance is less than the tolerable misstatement, the auditor may choose to ignore the error.

Question

Quizplus · Accepted Answer

Auditors cannot ignore errors even if they are below the tolerable misstatement; they must evaluate the nature and cause of the errors and consider their impact on the financial statements.

If the Unadjusted Difference Resulting from Projecting the Error Rate