Expected 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

Expected misstatement is the amount of misstatement that the auditor anticipates or estimates to be present in the account balance or class of transactions based on professional judgment. It is used in determining the sample size for substantive testing and evaluating the results of the audit procedures. It helps the auditor to determine the tolerable misstatement and identify the accounts or transactions that require further testing.

Expected Misstatement Is Defined as