is one that probably exists based on audit evidence examined, for example, the projected effect of a misstatement identified in representative samples or management accounting estimates or of policy choices that the auditor considers unreasonable. Multiple choice question.

likely misstatement (projected misstatement)

known misstatement (identified misstatement)

further possible misstatement

A passed adjustment by the auditor in public companies occur when Multiple choice question.


the auditor engages in discussion with the auditee 

on the opinion date the overall materiality level is below the accepted materiality 

overall materiality level is higher then the accepted materiality