Home > Term: tolerable misstatement
tolerable misstatement
When planning a sample for a substantive test of details, the auditor considers how much monetary misstatement may exist without causing the financial statements to be materially misstated. This maximum misstatement is called tolerable misstatement for the sample.
- Part of Speech: noun
- Industry/Domain: Accounting
- Category: Auditing
- Company: AIS
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