If tolerable misstatement for accounts payable is $1,000, the auditor would need to obtain more audit evidence for that account than if tolerable misstatement were $100,000.

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This statement is true. When the tolerable misstatement for an account is a small amount, the auditor needs to be more precise in their audit procedures and obtain more evidence to ensure that the account is fairly presented in the financial statements. On the other hand, if the tolerable misstatement is a larger amount, the auditor may be able to rely on broader procedures and still obtain sufficient evidence.

If Tolerable Misstatement for Accounts Payable Is $1,000, the Auditor