Which of the following is not an acceptable course of action the audit team can choose when sample evidence suggests that the account balance is materially misstated?
A) Increase the tolerable misstatement and examine additional items.
B) Increase the sample size and examine additional items.
C) Recommend adjustment of the client's account balance.
D) All of these are acceptable courses of action.

Question

Quizplus · Accepted Answer

Increasing the tolerable misstatement is not an acceptable action because it undermines the audit's integrity by artificially adjusting the threshold to avoid recognizing a misstatement.

Which of the Following Is Not an Acceptable Course of Action