An auditor using variables sampling to perform substantive procedures concludes that the account balance is misstated.This conclusion is the result of which of the following?
A)The actual rate of deviation is greater than the tolerable rate of deviation.
B)The upper limit on misstatement is less than the tolerable misstatement.
C)The upper limit rate of deviation is less than the tolerable rate of deviation.
D)The upper limit on misstatement is greater than the tolerable misstatement.

Question

Quizplus · Accepted Answer

The auditor concludes that the account balance is misstated when the upper limit on misstatement exceeds the tolerable misstatement, indicating that the potential misstatement is beyond what is acceptable.

An Auditor Using Variables Sampling to Perform Substantive Procedures Concludes