If the Auditor Finds a Misstatement When Performing Substantive Tests

question 8

Multiple Choice

If the auditor finds a misstatement when performing substantive tests, _______.

• A)the auditor should immediately withdraw from the engagement
• B)the auditor needs to evaluate the materiality of the misstatement
• C)the auditor should immediately increase inherent risk related to the engagement
• D)the auditor should immediately decrease inherent risk related to the engagement

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Definitions:

Inorganic Mineral Particles

Solid, naturally occurring substances that are not derived from living organisms, commonly found in soils and rocks, essential for various environmental and biological processes.

Organic Material

Matter that comes from living organisms or is composed of compounds originally synthesized by living organisms, often rich in carbon.

Micronutrient

An essential element that is required in trace amounts for normal growth. Compare with macronutrient.

Chlorine

A chemical element with symbol Cl and atomic number 17, known for its roles in disinfection, bleaching, and in the manufacture of a wide range of products.