According to AU 320, the evaluation of whether a misstatement could influence economic decisions of users
A) Is essential to determining whether to render an unmodified opinion
B) Is essential to determining whether the financial statements contain fraud
C) Is essential to determining whether such a misstatement is material
D) Is essential to determining whether there is a failed audit

Question

Quizplus · Accepted Answer

According to AU 320, the evaluation of whether a misstatement could influence economic decisions of users is essential to determining whether such a misstatement is material. Materiality is a key concept in auditing and can impact the type of opinion given on the financial statements.

According to AU 320, the Evaluation of Whether a Misstatement