During the course of an audit, misstatements that are individually immaterial may be detected. What should the auditor do with these?
a. Permanently pass on these immaterial misstatements as they do not individually impact the financial statements.
b. Request that management footnote the immaterial misstatements in the financial statements for fair presentation.
c. Accumulate all of the known and projected misstatements to determine if the impact is material in the aggregate.
d. Roll them forward for three years when they will become material enough to adjust.
c
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Carrie and Callie form a partnership in which Carrie contributes $85,000 in assets and agrees to devote half time to the partnership. Callie contributed $50,000 in assets and agrees to devote full time to the partnership. If no additional information is available, how will Carrie and Callie share in the division of income?
a. 5:8.5 b. 1:2 c. 1:1 d. 2:1
Dayton Construction has a ________ for processing invoices, which includes coding them by job number and construction phase, and matching them with the correct purchase order.
A. program. B. policy. C. rule. D. procedure. E. project.
Prior to the Great Recession of 2008/2009, American consumer spending was careful and restrained
Indicate whether the statement is true or false
Which of the following statements is incorrect?
A. A predetermined overhead rate is calculated using actual cost and volume data. B. A predetermined overhead rate is calculated by dividing costs by volume, using a measure of volume such as direct labor hours or direct materials cost. C. A company may need to allocate overhead costs to products to make pricing decisions for the products. D. A predetermined overhead rate may be used to allocate overhead costs when volume varies during the year.