An important part of evaluating whether the financial statements are fairly stated is summarizing the misstatements uncovered in the audit.Whenever the auditor uncovers misstatements that are in themselves material,
A)entries should be proposed to the client to correct the statements.
B)no entries need to be made but footnote disclosure is required.
C)it is necessary to combine individually immaterial misstatements with the material misstatements and make entries to correct the statements.
D)it is necessary to combine individually immaterial misstatements with the material misstatements and make full disclosure in the footnotes.

Question

Quizplus · Accepted Answer

Whenever the auditor uncovers misstatements that are in themselves material, entries should be proposed to the client to correct the statements. Material misstatements should be corrected through appropriate entries in the financial statements, rather than relying solely on footnote disclosure or combining immaterial misstatements. This is important to ensure that the financial statements are fairly stated and provide reliable information to stakeholders.

An Important Part of Evaluating Whether the Financial Statements Are