The Dollar Amount of Some Misstatements Cannot Be Accurately Measured

question 67

Multiple Choice

The dollar amount of some misstatements cannot be accurately measured. If, for example, the client was unwilling to disclose an existing lawsuit, the materiality question the auditor must evaluate in such a situation is

• A) what effect will it have on net income.
• B) how will it affect management's future decisions.
• C) whether it may increase the auditor's exposure to lawsuits.
• D) what effect it will have on statement users.

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Definitions:

Gaseous Fuel

Fuel in a gaseous state used for heating, cooking, or powering vehicles, such as natural gas or propane.

Carbon Monoxide Poisoning

A potentially fatal condition caused by inhaling carbon monoxide gas, which prevents the blood from carrying oxygen to cells, tissues, and organs.

Headaches and Dizziness

Common medical symptoms that can result from a variety of causes, ranging from mild conditions such as dehydration to more serious health issues.

Blood

A vital fluid in humans and other animals that transports oxygen and nutrients to the body's cells and carries away waste products.