Further possible misstatements ________.
A) are those actually identified during the audit, so there is no uncertainty about their existence
B) are those that probably exist, based on audit evidence examined
C) are those that could exist over and above the total of known and likely misstatements because of the fundamental limitations of auditing
D) are those for which the amount of possible misstatement cannot be precisely quantified

Question

Quizplus · Accepted Answer

Further possible misstatements refer to those that are beyond the total of known and likely misstatements due to the inherent limitations of auditing. These misstatements cannot be precisely quantified, leading to uncertainty about their existence. Option A refers to identified misstatements, leaving no uncertainty. Option B refers to likely misstatements, but not necessarily the ones beyond the known and likely misstatements. Option D refers to misstatements where the exact amount cannot be determined, but it does not fully capture the concept of further possible misstatements.

Further Possible Misstatements ________