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:

Fallacy of Ambiguity

Debates featuring unclear expressions or careless linguistic constructions.

Possible Choices

The range of options or alternatives available to someone when making a decision.

Fallacy of Equivocation

A logical fallacy that occurs when a word is used in two different senses in an argument, leading to a misleading or ambiguous conclusion.

Crusaders

Participants in the Crusades, which were military campaigns sanctioned by the Latin Church in the medieval period, primarily against Muslim territories in the Levant.