If an auditor assigns a tolerable misstatement of $1,000 to accounts payable, he or she would need to obtain more audit evidence for that account than if $100,000 had been assigned.

Question

Quizplus · Accepted Answer

A higher tolerable misstatement means that the auditor is willing to accept a greater risk of material misstatement in the account, and therefore would need to obtain more audit evidence to reduce that risk.

If an Auditor Assigns a Tolerable Misstatement of $1,000 to Accounts