In a nonstatistical substantive test of transactions for an income statement account,the auditor decides that sales revenue is materially misstated.In this case,the auditor might
A)investigate the misstatements in the account and recommend corrections
B)ask the client to investigate the misstatements in the account and correct them
C)increase the sample size and perform additional tests to identify the amount of the total misstatement in the income statement
D)increase the sample size and perform additional tests to reduce the amount of the total misstatement in the account
E)increase the sample size and perform additional tests to identify the amount of the total misstatement in the account
F)both A and B
G)both C and D
H)Both B and E

Question

Quizplus · Accepted Answer

When an auditor finds material misstatements in an account, they would typically ask the client to investigate and correct them (B) and may also increase the sample size and perform additional tests to identify the total amount of misstatement in the account (E), making both B and E correct actions.

In a Nonstatistical Substantive Test of Transactions for an Income