The term notable item refers to something that _______.
A)is indicative of a risk of material misstatement
B)has not been previously identified (a new risk)
C)represents a higher risk of material misstatement than anticipated by the auditor
D)All these answer choices are correct.

Question

Quizplus · Accepted Answer

All of the answer choices are correct and can be considered a notable item. A notable item is essentially anything that brings attention to the risk of material misstatement during an audit. Thus, any of the scenarios outlined in the answer choices could qualify as a notable item.

The Term Notable Item Refers to Something That _______