A series of immaterial errors spread across several accounts
A)will always have a material impact on earnings.
B)must always be corrected.
C)if found by the auditors,will result in a disclaimer.
D)can,in the aggregate,have a material effect on bottom line earnings.

Question

Quizplus · Accepted Answer

Even though each error may be immaterial on its own, the cumulative effect of several immaterial errors can be material and have an impact on bottom line earnings. Therefore, immaterial errors can, in the aggregate, have a material effect on earnings.

A Series of Immaterial Errors Spread Across Several Accounts