Multiple Choice
Which of the following statements best describes a misstatement?
A) a misstatement is either an error (an unintentional mistake) or fraud (an intentional mistake) in the financial statements
B) some management misstatements are material and some management misstatements are too small to be material
C) when a statement is material,an outsider would change his decision regarding the audit if he knew about the misstatement
D) some misstatements are neither material nor immaterial
Correct Answer:
Verified
Correct Answer:
Verified
Q92: How does the auditor gain an understanding
Q93: The audit risk model is a theoretical
Q94: When an accounting firm establishes a system
Q95: The audit program describes the evidence to
Q96: Step 2 of the planning process is
Q98: Audit risk is defined as<br>A)the risk that
Q99: The risk of material misstatement is a
Q100: During an audit engagement,the auditing standards require
Q101: Performing analytical procedures during the planning process
Q102: The system of quality control established by