When the projected likely misstatement is greater than the tolerable misstatement in a sample-based audit of an account balance, the auditor can decide that the account balance is materially misstated and therefore run the risk of incorrect acceptance.
Correct Answer:
Verified
Q43: Using the audit risk model: If audit
Q43: Calculate the projected likely misstatement (PLM) for
Q44: The sample deviation rate is the best
Q46: Statements or examples that relate to audit
Q47: Assume several auditors selected various unrestricted, unstratified
Q47: In specifying the objectives for substantive testing
Q51: Left and Right PAs audited the accounts
Q52: In making a decision about the extent
Q52: Below are steps in the process of
Q53: Jack and Jill,two auditors who have separate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents