If the total projected error in an account balance was $3,248 and the tolerable error was set at $10,000, the auditor would:
A) conclude that the errors uncovered are material.
B) decide that further audit work was required.
C) conclude that the errors detected are not material.
D) conduct other tests aimed at the assertion being tested.

Question

Quizplus · Accepted Answer

Since the total projected error is less than the tolerable error, the auditor can conclude that the errors detected are not material and the account balance is reasonably accurate. No further audit work or tests are necessary.

If the Total Projected Error in an Account Balance Was