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:

Inhibitory Postsynaptic Potential

A type of synaptic potential that makes a post-synaptic neuron less likely to generate an action potential, usually by making the inside of the neuron more negative.

Neuronal Membrane

The lipid bilayer that encases neurons, regulating the entry and exit of substances and maintaining the electric potential used for neural transmission.

Depolarization

A reduction in the difference in voltage across a cell's plasma membrane, which can trigger nerve impulses or muscle contractions.

Excitatory Postsynaptic Potential

An excitatory postsynaptic potential (EPSP) is a temporary increase in membrane potential in a postsynaptic neuron, making it more likely to fire an action potential, usually in response to neurotransmitter release.