What Is the Problem with the (Formerly Common) Practice Among

question 8

Essay

What is the problem with the (formerly common) practice among auditors to not correct a detected misstatement because the amount in question was not considered material?

---

Definitions:

Debt

An amount of money borrowed by one party from another, often used for making big purchases that require immediate payment.

Evidence

Information presented in testimony, documents, tangible objects, or other data used to establish facts or demonstrate truth in legal proceedings.

Drawee

In financial transactions, the party on whom a check or draft is drawn and who is responsible for paying the specified amount.

Obligated

Being legally or morally bound to do something or to fulfill a contract or promise.