That auditor will do which of the following when the results of sample testing conclude that there is misstatement in excess of the tolerable misstatement?
A) Issue a disclaimer of opinion.
B) Throw out the sample.
C) Propose adjustments to the client.
D) Disclose the misstatement in the client's financial statements.

Question

Quizplus · Accepted Answer

If sample testing concludes that there is a misstatement in excess of the tolerable misstatement, the auditor will propose adjustments to the client to correct the misstatement. This is done to ensure that the financial statements are presented fairly and accurately, and to maintain the integrity of the audit process. The other choices are not appropriate actions in this scenario. A disclaimer of opinion would be issued only if the auditor is unable to obtain sufficient evidence to support the financial statements. Throwing out the sample would not address the misstatement or provide a solution. Disclosing the misstatement in the financial statements would be misleading if no corrective actions have been taken.

That Auditor Will Do Which of the Following When the Results