I am an Accounting student myself so I appreciate you uploading these videos! I do have a question in regards to the tolerable misstatement. Isn't the tolerable misstatement similar to materiality? I am trying to understand whether there is a difference or not. Thank you.
The connection I think is that the tolerable misstatement reflects what is tolerable as an error/mistake based on the relative materiality of the company. i.e $1000 for 1 million dollar revenue company would be okay vs. $1000 for a $10000 revenue company.... essentially mistakes do happen not everything can be correct so we set a threshold that is deemed immaterial. If the figure the auditor finds exceeds the tolerable amount, it is then deemed material and therefore could impact decision making.
brooooo why is this free youube video explaining things better than my cpa course
I’m currently studying for the AUD exam. This upload is perfectly timed. I’m covering this section in my program and I’m kind of confused lol
Thank you
I am an Accounting student myself so I appreciate you uploading these videos! I do have a question in regards to the tolerable misstatement. Isn't the tolerable misstatement similar to materiality? I am trying to understand whether there is a difference or not. Thank you.
The connection I think is that the tolerable misstatement reflects what is tolerable as an error/mistake based on the relative materiality of the company. i.e $1000 for 1 million dollar revenue company would be okay vs. $1000 for a $10000 revenue company.... essentially mistakes do happen not everything can be correct so we set a threshold that is deemed immaterial. If the figure the auditor finds exceeds the tolerable amount, it is then deemed material and therefore could impact decision making.
@@jessalisauskas7069Appreciate you replying. It makes more sense to me looking it from that perspective. Thanks
@@SlyingHigh My pleasure legend have a great day :)
Background is too dark
Videos are amazing
Quite helpful
Background is not friendly with the health of the eyes it discourage to maintain the focus