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.

---

Definitions:

Frog

A cold-blooded amphibian known for its jumping abilities, croaking sounds, and life cycle that includes both aquatic and terrestrial stages.

Storage Capacity

Refers to the maximum amount of data that can be held by a storage device or medium.

Limits

Boundaries or constraints that define the scope or extent of something.

Semantic Memory

A type of long-term memory that involves the storage of general knowledge and facts about the world.