making the allocation of preliminary judgment about material

making the allocation of preliminary judgment about materiality (PJAM) to tolerable misstatement CTM), the auditor should a. allocate the b. allocate a same percentage of TM to an account for both overstatement and understatement. propensity to overstatement lower percentage of TM to an account which has a low and understatement relative to other accounts. c. allocate a higher percentage of TM to an account which has a high cost of collecting audit d. allocate a higher percentage of TM to an asset account than a liability account evidence relative to other accounts

Solution

In making the allocation of PJAM to TM, the auditor should

c. allocate a higher percentage of TM to an account which has a high cost of collecting audit evidence relative to other accounts.