The total amount of misstatement identified in a sample is referred to as the
A) projected misstatement.
B) tolerable misstatement.
C) actual misstatement.
D) incremental allowance for sampling risk.

Question

Quizplus · Accepted Answer

The total amount of misstatement identified in a sample is referred to as the actual misstatement, as it represents the precise value of errors or deviations found in the sample. Projected misstatement refers to the estimate of total misstatement in the population, while tolerable misstatement is the amount of misstatement that can be accepted without influencing the auditor's opinion. Incremental allowance for sampling risk is a method used to adjust the sample results for the possibility of error due to sampling.

The Total Amount of Misstatement Identified in a Sample Is