If a misstatement is considered material, _______.
A)it should have no bearing on financial statement users and the decisions they make
B)it could affect decisions that users make if the users are made aware of the misstatement
C)it should not affect decisions that users make if the users are made aware of the misstatement
D)an auditor should immediately issue an adverse opinion

Question

Quizplus · Accepted Answer

A material misstatement could potentially impact decisions made by financial statement users, therefore it is important for them to be made aware of the misstatement. This can either be through a revised statement or disclosure of the misstatement in a footnote. An auditor may issue a qualified or adverse opinion if the misstatement is deemed significant enough to affect the overall fairness of the financial statements.

If a Misstatement Is Considered Material, _______