The total amount of monetary error that is found in a sample is referred to as the ________.
A)projected likely misstatement
B)tolerable misstatement
C)known misstatement
D)possible misstatement

Question

Quizplus · Accepted Answer

The total amount of monetary error that is found in a sample is referred to as the known misstatement. This represents the actual misstatement in the population that the auditor has discovered through the sampling process. The projected likely misstatement and possible misstatement are estimates made by the auditor based on the results of the sample, while the tolerable misstatement is the maximum acceptable amount of error that the auditor is willing to accept.

The Total Amount of Monetary Error That Is Found in a Sample