Material Misstatements Discovered During the Audit _______

question 114

Multiple Choice

Material misstatements discovered during the audit _______.

• A)are a basis for the auditor to immediately issue a scope limitation
• B)are discussed with the client's legal counsel only, and usually they make the recommended adjustment to correct the misstatement
• C)are discussed with management, and usually management makes the recommended adjustment to correct the misstatement
• D)require a note disclosure in the financial statements

---

Definitions:

Animal

A living organism that feeds on organic matter, typically having specialized sense organs and nervous system, and capable of voluntary movement.

Genus

A term in classification denoting a category of organisms sharing common characteristics, ranking above species and below family.

Furniture

Objects used to make a room or building suitable for living or working in, such as chairs, tables, and beds.

Tables

Pieces of furniture consisting of a flat top supported by one or more legs, used for various activities like eating, writing, or working.