"Tolerable error" (or tolerable misstatement) is the term used to indicate materiality at the:
A) balance sheet level.
B) income statement level.
C) account balance level.
D) transactions level.

Question

Quizplus · Accepted Answer

Tolerable error, or tolerable misstatement, refers to the maximum error in an account balance that auditors can accept without concluding that the financial statements are materially misstated. It is applied at the account balance level, not at the overall financial statement or individual transaction level.

"Tolerable Error" (Or Tolerable Misstatement) Is the Term Used to Indicate