The total amount of actual monetary misstatement found 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 actual monetary misstatement found in a sample is referred to as the actual misstatement. The projected misstatement refers to the estimated misstatement in the entire population based on the sample results, while the tolerable misstatement is the amount of misstatement that the auditor is willing to accept without modifying their opinion. The incremental allowance for sampling risk is a component of the sample size calculation to account for the possibility of incorrect conclusions due to sampling error.

The Total Amount of Actual Monetary Misstatement Found in a Sample