What is the decision rule for determining the acceptability of sample results when monetary-unit sampling is used?
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total answers (1)
total answers (1)
Accounting
- Compare the tolerable misstatement (TM) to the upper misstatement limit (UML)
- If the upper misstatement limit is less than or equal to the tolerable misstatement, the audit evidence supports that the financial records are not materially misstated
- If the upper misstatement limit is more than the tolerable misstatement, the audit evidence does support it. It indicates unacceptable high risk or material misstatement of financial records
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