There Are Often a Large Number of Immaterial Errors Discovered

question 47

Multiple Choice

There are often a large number of immaterial errors discovered that do not require an adjustment at the time they are found.How should these errors be dealt with by the auditor?

• A)Since these items are individually immaterial,the auditor would not recommend adjusting entries to the client.
• B)Since there are a large number of these,the auditor would recommend adjusting entries to the client.
• C)The auditor must combine the individually immaterial errors and evaluate whether the combined amount is material.
• D)The auditor would never combine these individually immaterial amounts because that would mix apples and oranges.

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Definitions:

Standard Error of Estimate

A measure of the accuracy of predictions made with a regression line, representing the average distance that the observed values fall from the regression line.

Gas Mileage

The distance a vehicle can travel per unit quantity of fuel.

Truck Speed

The velocity at which a truck is traveling, often monitored for safety and regulatory compliance.

Standard Error of Estimate

A measure of the accuracy of predictions made by a regression model, indicating the average distance that the observed values fall from the regression line.