Which error below would be of much more concern to an external financial statement auditor and why? Be sure to comment on how each error below impacts the first three financial statements. Then provide your rationale on which error is of lessor concern. Be clear! (4 points)

a. A company fails to make the proper adjusting journal entry to recognize a portion of the unearned revenue that is earned this period.

b. A company fails to make the adjusting entry for the expiration of some of its prepaid insurance.

a.

b.