During Substantive Testing, If Material Misstatements Have Been Found to Exist

question 11

Multiple Choice

During substantive testing, if material misstatements have been found to exist, which of the following actions should be taken next?

• A)Proceed to the audit completion in the reporting phase
• B)Re-evaluate the audit risk in the planning phase
• C)Re-perform detailed tests of balances
• D)Re-perform an internal controls systems analysis

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Definitions:

Nasal Cavity

The large air-filled space behind the nose involved in breathing and olfaction, lined with mucosa that filters, moistens, and warms incoming air.

Bronchi

The major air passages of the lungs that diverge from the windpipe, providing a pathway for air to reach the lungs.

Carbon Dioxide

It's a transparent, unscented gas formed through the burning of carbon-containing compounds and the act of breathing, which is assimilated by plants in the photosynthesis process.

Bicarbonate Ions

Bicarbonate ions (HCO3-) act as a buffer in biological systems, helping to maintain pH balance in blood and other bodily fluids.