Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?
A)The auditor can ask the client to correct the known misstatements.
B)The auditor will analyze the detected misstatements for some common problems.
C)The auditor can expand the sample.
D)All of the above.

Question

Quizplus · Accepted Answer

When the total estimated misstatement exceeds the tolerable misstatement, the auditor should take multiple actions. First, the auditor should ask the client to correct the known misstatements. Second, the auditor should analyze the detected misstatements for common problems, which may help identify additional misstatements that can be corrected. Finally, one option is to expand the sample to obtain more reliable results, which can help reduce the likelihood of material misstatements going undetected. Therefore, all of the options mentioned in the question should be considered by the auditor.

Which One of the Following Is a Proper Course of Action