If the upper limit on misstatements is calculated at $17,800 and the tolerable misstatement is $15,000,what is the minimum amount of adjustment necessary for the audit team to issue an unqualified opinion on the client's financial statements?
A) $0.
B) $2,800.
C) $15,000.
D) $17,800.

Question

Quizplus · Accepted Answer

The minimum amount of adjustment necessary is the difference between the upper limit on misstatement and the tolerable misstatement, which is $17,800 - $15,000 = $2,800. Therefore, the correct answer is B.

If the Upper Limit on Misstatements Is Calculated at $17,800