What is the term used to describe the preliminary judgement about materiality allocated to any given account balance?
A) tolerable materiality
B) the materiality range
C) the error range
D) tolerable misstatement

Question

Quizplus · Accepted Answer

Tolerable misstatement is the term used to describe the preliminary judgement about materiality allocated to any given account balance. A and B may be relevant concepts in the materiality determination process, but they do not specifically describe the allocation of materiality to a particular account. C is not a commonly used term in auditing materiality.

What Is the Term Used to Describe the Preliminary Judgement