The auditor should evaluate the qualitative nature of misstatements found in a sample of debtors' confirmations:
A) only for large balances.
B) regardless of the dollar amount.
C) only for related party balances.
D) only for large differences.

Question

Quizplus · Accepted Answer

The auditor should evaluate the qualitative nature of misstatements found in a sample of debtors' confirmations regardless of the dollar amount. This is because even small misstatements may indicate a material weakness in the company's internal controls or fraud.

The Auditor Should Evaluate the Qualitative Nature of Misstatements Found