When planning a test of details using MUS sampling,tolerable misstatement is usually set at what level?
A)Higher than planning materiality.
B)Lower than planning materiality.
C)Either higher or lower than planning materiality.
D)The same as materiality.

Question

Quizplus · Accepted Answer

Tolerable misstatement is usually set lower than planning materiality to provide a reasonable assurance that any misstatements in the financial statements are not material enough to affect the users' decision-making. MUS sampling is most effective when tolerable misstatement is set below planning materiality.

When Planning a Test of Details Using MUS Sampling,tolerable Misstatement