What Is Tolerable Misstatement

Multiple Choice

What is tolerable misstatement?

A) The maximum dollar amount of misstatement that an auditor is willing to accept in a transaction class or an account balance.
B) The amount of misstatement the auditor expects in a transaction class or account balance.
C) The level of assurance that the sample is representative of the population.
D) A high level of assurance leading to a lower level of sampling risk.