If an Auditor Concludes the Financial Statements Contain Only Immaterial

question 24

Multiple Choice

If an auditor concludes the financial statements contain only immaterial errors, then the auditor should:

• A) correct the errors.
• B) have the client correct the errors.
• C) issue an unqualified ("clean") opinion on the financial statements.
• D) issue a qualified opinion on the financial statements.

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Definitions:

Excess Reserves

Funds that banks hold over and above the legal reserve requirement set by central banking authorities.

Government Bonds

Securities issued by a government to raise funds from the public to finance its expenditure needs.

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability.

U.S. Treasury Department

A federal government department responsible for managing government revenue, issuing currency, and supervising national banks.