Which of the Following Relatively Small Misstatements Most Likely Would

question 27

Multiple Choice

Which of the following relatively small misstatements most likely would have a material effect on an entity's financial statements?

• A)An illegal payment to a foreign official that was not recorded.
• B)A piece of obsolete office equipment that was not retired.
• C)A petty cash fund disbursement that was not properly authorized.
• D)An uncollectible account receivable that was not written off.

---

Definitions:

Obsessions

Persistent and intrusive thoughts, impulses, or images that cause significant anxiety or distress.

Dissociative Fugue

A disorder characterized by sudden, unplanned travel away from home, combined with an inability to recall one’s past and confusion about personal identity.

Mood Disorders

Psychological disorders characterized by persistent disturbances in mood or emotional state, such as depression or bipolar disorder.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states or identities within a single individual, each with its own pattern of perceiving and interacting with the world.