- 1 Marks
Question
The maximum error in the population that the auditor can accept as being consistent with the conclusion that sample result confirms achievement of the audit objective is known as……………..error.
Answer
Tolerable error
Explanation:
Tolerable error represents the maximum level of error or deviation that the auditor is willing to accept in the population without compromising the reliability of their conclusion. This concept is integral to audit sampling and ensures the sample results reasonably align with the audit objectives and the financial statement assertions.
- Tags: Audit Objective, Audit Standards, Population Error, Sampling
- Level: Level 3
- Topic: Audit Reporting
- Series: NOV 2013
- Uploader: Dotse