When Reviewing the Summary of Misstatements Found in the Audit

question 134

Multiple Choice

When reviewing the summary of misstatements found in the audit,

• A) an adjusting journal entry must be made by the auditor for all material misstatements.
• B) auditors must combine individually immaterial misstatements to evaluate whether the combined amount is material.
• C) the auditor is not required to consider the impact on the current financial statements of misstatements in the prior year that were not corrected.
• D) auditors only need to consider the misstatements that impact the income statement.

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Definitions:

Demographic Transition Theory

A theory that describes the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Population Development

The study of changes in population numbers, composition, and distribution, and how these changes affect socio-economic development.

Crude Birth Rate

The number of live births per 1,000 population in a given year.

Live Births

The event of giving birth to a baby who shows signs of life after being born.