When Dealing with Materiality

question 137

Multiple Choice

When dealing with materiality,

• A) if the client refuses to correct a material misstatement, the auditor is required to adjust the financial statements.
• B) management is responsible for determining whether financial statements are materially misstated.
• C) materiality must be determined as a percentage of sales.
• D) the auditor must bring any material misstatements to the client's attention.

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