What document is prepared so that auditors can aggregate potential misstatements in order to assess the materiality of misstatements?
A) The audit opinion.
B) The summary of unadjusted audit differences.
C) The summary of earnings trends.
D) The post-closing trial balance.

Question

Quizplus · Accepted Answer

The summary of unadjusted audit differences is a document prepared by the auditors that aggregates potential misstatements, allowing them to assess the materiality of those misstatements. This information is then used by the auditors to determine whether the financial statements are fairly presented and whether any adjustments need to be made. The audit opinion is a separate document that expresses the auditors' opinion on the fairness of the financial statements as a whole. The summary of earnings trends and the post-closing trial balance may be useful documents in the audit process, but they do not specifically serve the purpose of aggregating potential misstatements.

What Document Is Prepared So That Auditors Can Aggregate Potential