Please be sure of your answers. I see a lot of different answers here. If your answer is wrong, I will vote it down and flag it. Please answer only if you know the answer.

1.Upon examining repair and maintenance costs recorded by Cane Company during the year, an auditor finds a material amount that should have been capitalized in property, plant and equipment. If this error is left uncorrected, how would it affect Cane's reported net income and assets in its year-end financial statements?

Net Income Assets

A. UnderstateUnderstate

B. UnderstateOverstate

C. Overstate Understate

D. Overstate Overstate

2.Good, Better, & Best, CPAs, has audited the financial statements of A Very Fine Co and, in the process identified several significant deficiencies in internal control. There are a couple of issues that may be difficult to explain and they are wondering by what date they are required to provide the written communication regarding internal control related matters.

A. Which title of Professional Standards addresses this issue & will be helpful in understanding when the written communication is required?

B. Enter the exact section and paragraph with helpful information.