The auditors have calculated the total uncorrected identified misstatements as $445,000; materiality for the audit is $450,000. The client has declined to record the related journal entries. In this situation it is most likely that the auditors will:
A. Issue a disclaimer of opinion.
B. Perform additional audit procedures to reduce audit risk to an appropriately low level.
C. Conclude that the financial statements are not materially misstated.
D. Resign from the audit.
Answer: B
You might also like to view...
Juan and Sarah make a second call on the client to present the proposal. After thanking the prospect for agreeing to a meeting, Sarah says, "I would like to accomplish three goals during the time you've given us today"
Which approach is Sarah most likely using? A) customer benefit B) referral C) premium D) agenda E) survey
The total landed cost approach represents what?
Which HR specialty covers the recruiting process and selecting the best candidate?
A. Training and development B. Staffing C. Labor and industrial relations D. Ethics and sustainability E. Safety and security
When selecting persons for overseas assignments, which attribute is least desired?
a. flexibility b. apathy c. tolerance of ambiguity d. high self-esteem