During the Course of an Audit,misstatements That Are Individually Immaterial

question 12

Multiple Choice

During the course of an audit,misstatements that are individually immaterial may be detected.What should the auditor do with these?

• A)Permanently pass on these immaterial misstatements as they do not individually impact the financial statements.
• B)Request that management footnote the immaterial misstatements in the financial statements for fair presentation.
• C)Accumulate all of the known and projected misstatements to determine if the impact is material in the aggregate.
• D)Roll them forward for three years when they will become material enough to adjust.

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Definitions:

"In-law"

A relative by marriage, typically referring to the spouse's parents, siblings, or their spouses.

Reserved and Quiet

Characteristics of individuals who are naturally inclined to be introspective, preferring to listen rather than speak, and often cautious in social situations.

Distrust

A lack of trust or confidence in someone or something, often stemming from past experiences or perceptions of unreliability.

Respect

An attitude of admiration or deference towards someone or something, often shown by treating them with kindness, honoring their rights, and valuing their contributions.