The auditors have calculated the total uncorrected identified misstatements as $445,000;materiality for the audit is $450,000.The client has declined to record the related journal entries.In this situation it is most likely that the auditors will:
A)Conclude that the financial statements are not materially misstated.
B)Issue a disclaimer of opinion.
C)Perform additional audit procedures to reduce audit risk to an appropriately low level.
D)Resign from the audit.

Question

Quizplus · Accepted Answer

The auditors are required to perform additional audit procedures to reduce audit risk to an appropriately low level when the client has declined to record the related journal entries and the total uncorrected identified misstatements exceed materiality.

The Auditors Have Calculated the Total Uncorrected Identified Misstatements as $445,000;materiality