When monetary-unit sampling has been concluded and the population is not considered acceptable, which one of the following courses of action would NOT be appropriate for the auditor?
A) Refuse to give an unqualified opinion.
B) Request the client to correct the population.
C) Increase the sample size to see if this may satisfy the auditor's tolerable misstatement requirements.
D) Increase the tolerable misstatement amounts so that the error bounds are acceptable.

Question

Quizplus · Accepted Answer

Increasing the tolerable misstatement amounts so that the error bounds are acceptable would not be appropriate as it undermines the auditor's professional skepticism and integrity. The auditor should instead request the client to correct the population, or increase the sample size to see if this may satisfy the auditor's tolerable misstatement requirements. If the population still does not meet the auditor's requirements, the auditor should consider issuing a qualified or adverse opinion or withdrawing from the engagement, rather than compromising their professional standards.

When Monetary-Unit Sampling Has Been Concluded and the Population Is