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 the above are acceptable courses of action.

Question

Quizplus · Accepted Answer

Increasing the tolerable misstatement is not an acceptable course of action because it undermines the integrity of the audit process by artificially adjusting the threshold for what is considered a material misstatement.

Which of the Following Is Not an Acceptable Course of Action