Tolerable misstatement is defined as
A)the level of assurance that the account balance or class of transactions is not misstated
B)the amount of misstatement,on the basis of the auditor's professional judgment,that should be present in the account balance or class of transactions
C)the maximum misstatement in the account balance or class of transactions that the auditor is willing to accept
D)the level of audit risk the auditor is willing to accept

Question

Quizplus · Accepted Answer

Tolerable misstatement is the maximum misstatement in the account balance or class of transactions that the auditor is willing to accept. It represents the threshold beyond which the auditor believes the financial statements may be materially misstated.

Tolerable Misstatement Is Defined as