Professional standards recognize that a misstatement that is quantitatively immaterial may be qualitatively material. In regard to these items, professional standards require the auditor to:
A) plan the audit to search for them.
B) design explicit procedures to detect them.
C) be on the alert for them.
D) report them to the audit committee.
E) report them directly to client management.

Question

Quizplus · Accepted Answer

Being on the alert for qualitatively material misstatements, even if they are quantitatively immaterial, is a requirement for auditors. This involves maintaining professional skepticism and awareness throughout the audit process to identify any such misstatements that could impact the financial statements' users' decisions.

Professional Standards Recognize That a Misstatement That Is Quantitatively Immaterial