Which of the Following Is True About the Term "Likely

Multiple Choice

Which of the following is true about the term "likely misstatement?"

A) It refers to misstatements that have not been specifically identified, but which are likely to exist based on the auditor's judgment.
B) It refers to the cumulative effect of misstatements from prior years on the current year's financial statements.
C) It refers to misstatements that have been specifically identified by the auditor.
D) It includes both identified misstatements and an estimate of unidentified misstatements.