Day: July 5, 2026

Which ONE of the following is the definition of an anomaly?

Select ONE answer:

1. The misstatement that the auditor expects to be present in the population
2. Control deviations, when performing tests of control, or misstatements, when performing substantive procedures
3. The maximum misstatement in the population that the auditor would be willing to accept
4. A misstatement or deviation that is demonstrably not representative of misstatements or deviations in a population

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – The misstatement that the auditor expects to be present in the population is called the expected misstatement. Control deviations identified during tests of controls and misstatements identified during substantive procedures are collectively referred to as misstatements. The maximum error in the population that the auditor is willing to accept is called the tolerable misstatement.

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