The Upper Limit on Misstatement Is

question 83

Multiple Choice

The upper limit on misstatement is

• A) an adjustment of the sample estimate of misstatement to reflect the desired level of sampling risk.
• B) an adjustment of the sample deviation rate to reflect the desired level of sampling risk.
• C) the maximum rate of deviation that could exist before auditors would reduce the reliance on an internal control.
• D) the maximum misstatement that could exist before auditors would conclude that the account balance is not fairly stated.

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Definitions:

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