When dealing with materiality,
A) if the client refuses to correct a material misstatement, the auditor is required to adjust the financial statements.
B) management is responsible for determining whether financial statements are materially misstated.
C) materiality must be determined as a percentage of sales.
D) the auditor must bring any material misstatements to the client's attention.

Question

Quizplus · Accepted Answer

The auditor is responsible for identifying and bringing any material misstatements to the client's attention, as it is part of their duty to ensure the financial statements are free from material misstatement.

When Dealing with Materiality