If the upper limit on misstatements exceeds tolerable misstatement, the auditor is least likely to:
A)increase sample size.
B)conduct other substantive procedures.
C)adjust the account balance.
D)increase the risk of incorrect rejection.

Question

Quizplus · Accepted Answer

Increasing the risk of incorrect rejection is not a direct response to the upper limit on misstatements exceeding the tolerable misstatement. Instead, auditors may increase sample size, conduct other substantive procedures, or adjust the account balance to gather more evidence or correct the misstatement. Increasing the risk of incorrect rejection would not address the issue of the misstatement exceeding tolerable levels.

If the Upper Limit on Misstatements Exceeds Tolerable Misstatement, the Auditor