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In completing the audit, the auditor will seek client approval of any adjustments passed. What does the term adjustments passed signify? A. Adjustments passed were

In completing the audit, the auditor will seek client approval of any "adjustments passed." What does the term "adjustments passed" signify?

A. "Adjustments passed" were proposed by the client, and the auditor declined to adjust the financial statements.

B. There should be NO "adjustments passed." It is a misnomer.

C. The auditor noted immaterial mistakes made by the client that came to the auditor's attention during the course of the audit; while they don't need to be recorded to satisfy the concept of "fair presentation" of the financial statements, the client may choose to record the adjustments anyway.

D. The auditor noted material mistakes or misstatements made by the client that came to the auditor's attention during the course of the audit; accordingly, they need to be recorded to satisfy the concept of "fair presentation" of the financial statements.

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