The discovery of an intentional misstatement,even if immaterial,could impact the auditor's opinion on the effectiveness of the client's:
A)external controls.
B)interim financial statements.
C)internal controls.
D)segment reports.

Question

Quizplus · Accepted Answer

The discovery of an intentional misstatement can indicate weaknesses or inadequacies in the client's internal controls, which can lead to an increased risk of material misstatement in the financial statements. As such, the auditor may need to reconsider their assessment of the effectiveness of the internal controls and may need to perform additional testing to ensure the accuracy of the financial statements. The discovery of a misstatement is unlikely to impact the auditor's opinion on external controls, interim financial statements, or segment reports, unless the misstatement is material and affects these areas.

The Discovery of an Intentional Misstatement,even If Immaterial,could Impact the Auditor's