Tolerable misstatement is
A)a matter of professional judgment
B)the amount of misstatement,on the basis of the auditor's professional judgment,that should be present in the account balance or class of transactions
C)the maximum misstatement in the account balance or class of transactions that the auditor is willing to accept
D)the level of audit risk the auditor is willing to accept
E)both A and C
F)both B and D
G)both D and E

Question

Quizplus · Accepted Answer

Tolerable misstatement is indeed a matter of professional judgment (A) and is defined as the maximum error or misstatement in the account balance or class of transactions that the auditor is willing to accept (C). This concept is crucial in planning the audit and determining the nature, timing, and extent of audit procedures.

Tolerable Misstatement Is