Most Audit Firms Use a Schedule,often Referred to as a Summary

question 84

Multiple Choice

Most audit firms use a schedule,often referred to as a summary of unadjusted audit differences (SUAD) ,to accumulate the known and projected misstatements and the carryover effects of prior-year uncorrected misstatements.Which of the following statements regarding this process is false?

• A)Individually immaterial misstatements are not entered on the SUAD.
• B)Possible adjustments to the financial statements that are left uncorrected are referred to as waived.
• C)Tax effects are shown on the SUAD.
• D)The nature of the misstatement,as well as the quantitative amount,is considered in the judgment of materiality.

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