When planning a test of details using MUS sampling,tolerable misstatement is usually set
A)higher than planning materiality.
B)lower than planning materiality.
C)either higher or lower than planning materiality.
D)the same as materiality.

Question

Quizplus · Accepted Answer

Tolerable misstatement is typically set lower than planning materiality in MUS sampling. This is because MUS sampling focuses on identifying significant misstatements that have a higher likelihood of being material, so a lower tolerable misstatement threshold is needed to ensure those misstatements are identified.

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