Meet Us Here
Dharanesh DannyDharanesh Danny asked 2 years ago

Pm 3rd chapter 27 2nd paragraph

2 Answers
Auditaudit Staff answered 2 years ago

Tolerable misstatements means that misstatements in fst which is below the tolerable limit and deviations are overriding of internal control system subject to maximum tolerable limit of deviations planned.

RaviRavi Staff answered 2 years ago

Deviation is word used when auditor observes internal control system is not being followed
Misstatement is word used when auditor observes data in financial statement is incorrect
After sampling auditor determines deviations and misstatements observed, then on this basis he projects what could be total deviations and misstatements in poloulation
then he compares projected figures with tolerable limits, if they are within limits, he concludes deviations and misstatements are within acceptable limits and he can rely on controls or financial data as appropriate, no need to check further and vice versa
so these are acceptable limits for deviations and misstatement

Call Back Request