When tolerable misstatement is exceeded by ________ the auditor should request the client to adjust their account balance.
I. Known misstatements
II. Projected misstatement
A) I only
B) II only
C) I and II
D) None of the above

Question

Quizplus · Accepted Answer

The auditor should request the client to adjust their account balance when tolerable misstatement is exceeded by both known misstatements and projected misstatements, as both can indicate that the financial statements may be materially misstated.

When Tolerable Misstatement Is Exceeded by ________ the Auditor Should