14-4 Which of the following statements is false?

a. Managements incentives may bias their willingness to book, or correct, detected misstatements.

b. Known misstatements are those that arise from differences in judgments of management concerning accounting estimates that the auditor considers unreasonable, or the selection or application of accounting policies that the auditor considers inappropriate.

c. Section 10A(b) of the Exchange Act requires auditors to take action upon discovery of an illegal act even if it does not have a material effect on the financial statements, including alerting management and the audit committee.

d. The auditor evaluates the misstatements that have been posted to the summary of unadjusted audit differences (SUAD) to determine whether uncorrected misstatements are materialeither individually or in combination with other misstatements.