If a Misstatement Is Considered Material, _______

question 30

Multiple Choice

If a misstatement is considered material, _______.

• A)it should have no bearing on financial statement users and the decisions they make
• B)it could affect decisions that users make if the users are made aware of the misstatement
• C)it should not affect decisions that users make if the users are made aware of the misstatement
• D)an auditor should immediately issue an adverse opinion

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Definitions:

Customer's Expectations

The beliefs or standards that customers have regarding the quality, performance, and value of a product or service.

Repairing Damage

The process of fixing or restoring something that has been broken, harmed, or impaired.

Modifying

The act of making changes or alterations to something, often to improve it or to adjust it to different conditions.

Refuse a Claim

The act of denying or rejecting a request for compensation or redress, typically in a formal or official capacity.