Tolerable misstatement does not affect audit risk, inherent risk, control risk, or planned detection risk yet the combination of the tolerable misstatement and the four risks will determine the amount of planned audit evidence.

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Tolerable misstatement is a benchmark used by auditors to determine the acceptable amount of error in financial statements. It does not impact audit risk, inherent risk, control risk, or planned detection risk directly, but is used in conjunction with these factors to determine the amount of planned audit evidence needed.

Tolerable Misstatement Does Not Affect Audit Risk, Inherent Risk, Control