When planning a test of details using MUS sampling,tolerable misstatement is usually set at what level?
A)Higher than performance materiality.
B)Lower than performance materiality
C)Higher than the expected error amount.
D)Lower than the expected error amount.

Question

Quizplus · Accepted Answer

Tolerable misstatement is typically set at a lower level than performance materiality in MUS sampling. This is because MUS sampling is designed to provide a higher level of assurance over specific account balances by identifying any misstatements that are likely to cause a material misstatement in the financial statements. Therefore, a lower tolerable misstatement level is required to achieve this level of assurance.

When Planning a Test of Details Using MUS Sampling,tolerable Misstatement