Which of the following is an incorrect statement? a. Financial statements are materially misstated when they contain
Question:
Which of the following is an incorrect statement?
a. Financial statements are materially misstated when they contain misstatements whose effect, individually or in the aggregate, is impor tant enough to cause the financial statements not to be presented fairly, in all material respects, in conformity with generally accepted accounting principles.
b. Materiality for planning purposes is the largest aggregate level of misstatements that could be considered material to any one of the financial statements.
c. Preliminary judgments about materiality may differ from judgments about materiality used in evaluating the audit findings.
d. If significantly lower materiality levels become appropriate in evaluating audit findings, the auditor should reevaluate the sufficiency of the audit procedures.
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor