Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 31

Tolerable misstatement is
A) The amount of misstatement that management is willing to tolerate in the financial statements.
B) Materiality for the balance sheet as a whole.
C) Materiality for the income statement as a whole.
D) Materiality used to establish a scope for the audit procedures for the individual account balance or disclosures.