The auditor's sample would indicate that the client's account balance is fairly stated when the _____ is less than the _____.
A)Upper limit on misstatements; tolerable misstatement.
B)Actual misstatement; tolerable misstatement.
C)Tolerable misstatement; upper limit on misstatements.
D)Tolerable misstatement; actual misstatement.

Question

Quizplus · Accepted Answer

The auditor's sample would indicate that the client's account balance is fairly stated when the upper limit on misstatements is less than the tolerable misstatement, meaning the potential error is within acceptable limits.

The Auditor's Sample Would Indicate That the Client's Account Balance