A notable item is an item identified, from the population being analyzed, that has one or more characteristics that, for relevant assertions, may:
A)Be indicative of a risk of material misstatement
B)Provide information useful in designing procedures to address risks of material misstatement.
C)Provide information useful in tailoring procedures to address risks of material misstatement.
D)All these answer choices are correct.

Question

Quizplus · Accepted Answer

All of the answer choices are correct. Notable items can be indicative of a risk of material misstatement and can provide useful information in designing and tailoring procedures to address those risks. Therefore, all three answer choices are relevant in relation to the significance of notable items in the audit process.

A Notable Item Is an Item Identified, from the Population