Tolerable misstatement is used to

Social Studies

1 answer:

Mice21 [21]2 years ago

6 0

Answer:

It is used to determine sample size, select and evaluate sample. So,options A to D are correct

Explanation:

When a financial statement line item deviate from its true amount without impacting a justified presentation of the entire financial statements, their occur a deviation in amount. This deviation in amount is known as TOLERABLA MISSTATEMENT.

Tolerable misstatements is used by auditors to evaluate the financial statements of a client.

Material misstatements are the addition of tolerable misstatements in several financial statement line items.

Tolerable misstatements are used to determine sample size, select the sample and evaluate results.

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