Likely Misstatements ________

question 26

Multiple Choice

Likely misstatements ________.

• A)are those actually identified during the audit,so there is no uncertainty about their existence
• B)are those that probably exist,based on audit evidence examined
• C)are those that could exist over and above the total of known and likely misstatements because of the fundamental limitations of auditing
• D)are those for which the amount of possible misstatement cannot be precisely quantified

---

Definitions:

Permissible

Allowed or permitted within a set of rules, laws, or regulations.

Exculpatory Clause

A contract provision that relieves one party of liability if damages are caused during the execution of the contract.

Liability

A legal responsibility or obligation that may arise from any number of legal claims or is imposed by law.

Unconscionability

A contract or term within a contract that is so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.