Answered

Tolerable misstatement is used to
A. Determine sample size Select the sample Evaluate results Yes Yes No
B. Determine sample size Select the sample Evaluate results No Yes No
C. Determine sample size Select the sample Evaluate results No No Yes
D. Determine sample size Select the sample Evaluate results Yes No Yes

Answer :

codedmog101

Answer:

It is used to determine sample size, select and evaluate sample. So,options A to D are correct

Explanation:

When a financial statement line item deviate from its true amount without impacting a justified presentation of the entire financial statements, their occur a deviation in amount. This deviation in amount is known as TOLERABLA MISSTATEMENT.

Tolerable misstatements is used by auditors to evaluate the financial statements of a client.

Material misstatements are the addition of tolerable misstatements in several financial statement line items.

Tolerable misstatements are used to determine sample size, select the sample and evaluate results.

Other Questions