=+E3-23 Effect on financial statements ofomitting adjustment Obj 3 The adjustment for accrued fees was omitted at August 31, the end ofthe current year. Indicate which items will be in error, because ofthe omission, on

(a) the income statement for the cur¬

rent year and

(b) the balance sheet as ofAugust 31. Also indicate whether the items in error will be overstated or understated.