Which of the following best describes the amount of misstatement an auditor is willing to accept and still judge that an account balance is not materially misstated?
A) Tolerable misstatement.
B) Performance materiality.
C) A clearly trivial amount.
D) Significant risk.

Question

Quizplus · Accepted Answer

The amount of misstatement an auditor is willing to accept and still judge that an account balance is not materially misstated is known as tolerable misstatement. It is set by the auditor based on their professional judgement and is lower than the materiality threshold.

Which of the Following Best Describes the Amount of Misstatement