4. 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 $5000 misstatement, but not the $5 error

c. All three misstatements must be reported

d. None