During the Course of an Audit,immaterial Misstatements May Be Detected

question 72

Multiple Choice

During the course of an audit,immaterial misstatements may be detected.The auditor should do which of the following?

• 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:

Managing Diversity

The practice of acknowledging, understanding, accepting, and valuing differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status.

Competitive Advantage

A business's unique ability to perform better than its competitors due to superior products, services, or operations.

Strategic Advantage

A benefit that enables an organization to outperform its competitors.

Equitable Treatment

The practice of fairness and impartiality in the handling and decision-making of all individuals.