The title of a certain working paper is "Proposed Adjusting Entries." The use of the word "proposed" indicates that:
A) these are reclassifying entries.
B) the listed adjustments are not considered necessary.
C) the auditor should not adjust the accounting records.
D) the listed adjustments are not considered material.
E) the client disagrees with the adjustments listed.

Question

Quizplus · Accepted Answer

The term "proposed" suggests that the adjustments are suggestions made by the auditor, and it is up to the client to decide whether to implement them in the accounting records.

The Title of a Certain Working Paper Is "Proposed Adjusting