A tolerable misstatement is:
A) A percentage threshold, such as 2%, of variance allowed in net income.
B) Zero as all accounts must represent 100% accuracy.
C) A set amount, such as $100,000, that an account can be misstated before an auditor will call for a preliminary judgment.
D) An amount set by the FASB based upon the industry the company is in.
Correct Answer:
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