If the Upper Limit on Misstatements Exceeds Tolerable Misstatement, the Auditor

question 22

Multiple Choice

If the upper limit on misstatements exceeds tolerable misstatement, the auditor is least likely to:

• A)increase sample size.
• B)conduct other substantive procedures.
• C)adjust the account balance.
• D)increase the risk of incorrect rejection.

---

Definitions:

Referent Power

A form of influence based on the charisma and interpersonal appeal of the leader, leading others to admire and identify with them.

Capacity to Influence

The power or ability of an individual or group to sway or affect the decisions, behaviors, and opinions of others within an organizational or social context.

Social Intelligence

The ability to understand and navigate complex social environments and relationships, involving awareness of social dynamics and sensitivity to social cues.

Leadership

The process of providing general direction, from a position of influence, to individuals or groups toward the successful attainment of goals.