If the projected misstatement is less than the tolerable misstatement,the auditor must
A)give appropriate consideration to the sampling risk in the determination of whether the projected misstatement plus sampling risk is greater than the tolerable misstatement
B)give appropriate consideration to the sampling risk in the determination of whether the projected misstatement plus sampling risk is less than the tolerable misstatement
C)gather additional evidence to determine the amount of the material misstatement
D)gather additional evidence to determine the amount of the actual tolerable misstatement

Question

Quizplus · Accepted Answer

When the projected misstatement is less than the tolerable misstatement, the auditor must consider the sampling risk to determine if the projected misstatement plus sampling risk exceeds the tolerable misstatement. This ensures that the audit conclusion is appropriately conservative, accounting for the uncertainty inherent in sampling.

If the Projected Misstatement Is Less Than the Tolerable Misstatement,the