Which of the following best describes the amount of misstatement an auditor is willing to accept and still will not say the account balance is materially misstated?
A)Tolerable misstatement.
B)Performance materiality.
C)A clearly trivial amount.
D)Significant risk.

Question

Quizplus · Accepted Answer

Tolerable misstatement is the amount of misstatement in an account balance that the auditor is willing to accept without concluding that the balance is materially misstated. It is often set at a lower level than performance materiality.

Which of the Following Best Describes the Amount of Misstatement