An auditor encounters an error and decides not to suggest an adjustment. This is an example of:
A) professional skepticism.
B) professional judgment.
C) materiality decision.
D) Both b and c

Question

Quizplus · Accepted Answer

The auditor's decision not to suggest an adjustment is an example of using professional judgment to determine that the error is not material to the financial statements, hence a materiality decision.

An Auditor Encounters an Error and Decides Not to Suggest