Question
An auditor has discovered a misstatement in the financial statements that management refuses to correct. Regarding this misstatement, which of the following statements is true?
An auditor has discovered a misstatement in the financial statements that management refuses to correct. Regarding this misstatement, which of the following statements is true?
A. If the amount of the misstatement is less than performance materiality but more than the posting threshold, then the misstatement should be included on the Summary of Uncorrected Misstatements.
B. If the amount of the misstatement is more than performance materiality but less than the posting threshold, then the misstatement should be included on the Summary of Uncorrected Misstatements.
C. If the amount of the misstatement is less than both performance materiality and the posting threshold, then the misstatement should be included on the Summary of Uncorrected Misstatements.
D. If the amount of the misstatement is less than performance materiality, then the misstatement is considered trivial and can be ignored.
E. None of the above.
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