Under Auditing Standards, Which of the Following Would Be Classified

Multiple Choice

Under Auditing Standards, which of the following would be classified as an error?

A) Misappropriation of assets for the benefit of management.
B) Misinterpretation by management of facts that existed when the financial statements were prepared.
C) Preparation of records by employees to cover a fraudulent scheme.
D) Intentional omission of the recording of a transaction to benefit a third party.