In the Audit of ABC Company,where Materiality Was Assessed as $15,000,three

Multiple Choice

In the audit of ABC Company,where materiality was assessed as $15,000,three misstatements were detected: an improper asset capitalization of $18,000,an employee theft of $5,000 and a $5 posting error.In accordance with CAS 260,the auditor must report which of these misstatements to the audit committee?

A) Only the $18,000 misstatement.
B) Both the $18,000 and $5,000 misstatement,but not the $5 error.
C) All three misstatements must be reported.
D) None of the misstatements need be reported to the audit committee,just to an appropriate level of management.