Which of the following factors is most likely established based on the results of prior audit examinations?
A)Expected misstatement.
B)Population size.
C)Risk of incorrect acceptance.
D)Tolerable misstatement.

Question

Quizplus · Accepted Answer

Expected misstatement is a factor that is typically determined based on the results of prior audit examinations. It represents the amount of potential misstatement that the auditor would expect to find in the current period based on past experience. The other factors listed (population size, risk of incorrect acceptance, and tolerable misstatement) are important considerations in the audit process, but are typically established through other means such as risk assessment procedures or client discussions.

Which of the Following Factors Is Most Likely Established Based