During the Course of an Audit,misstatements That Are Individually Immaterial

question 12

Multiple Choice

During the course of an audit,misstatements that are individually immaterial may be detected.What should the auditor do with these?

• A)Permanently pass on these immaterial misstatements as they do not individually impact the financial statements.
• B)Request that management footnote the immaterial misstatements in the financial statements for fair presentation.
• C)Accumulate all of the known and projected misstatements to determine if the impact is material in the aggregate.
• D)Roll them forward for three years when they will become material enough to adjust.

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Definitions:

Bodily Humor

A historical theory in medicine that believed human health and temperament depended on the balance of bodily fluids.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behavior, thoughts, and emotions.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for behaviors such as decision making, problem solving, and controlling movement.

Emotional Reactions

Responses that involve emotional components, such as feeling happy, sad, angry, or afraid in reaction to stimuli.