How Does the Auditor Determine Allowance for Sampling Risk in Nonstatistical

Question

Examlex · Accepted Answer

The Answer is In nonstatistical sampling, the auditor cannot calculate an allowance for sampling risk for specific, measurable levels of risk of incorrect acceptance and rejection. However, the difference between projected and tolerable misstatement may be perceived as an allowance for sampling risk. If tolerable misstatement is greater than projected misstatement by a large amount, the auditor may be reasonably assured that there is an acceptably low sampling risk and that the actual misstatement is greater than the tolerable misstatement.

How Does the Auditor Determine Allowance for Sampling Risk in Nonstatistical

Essay

Correct Answer:
Verified

How Does the Auditor Determine Allowance for Sampling Risk in Nonstatistical

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified