hard20 pts · first answer countsmaterialitymisstatements

Small misstatements that add up

Overall materiality is ₹2,00,000. The auditor has three uncorrected misstatements that each overstate profit: ₹90,000, ₹70,000 and ₹60,000. What should the auditor conclude?

A.Together they total ₹2,20,000, which is material, so management should be asked to correct them or the opinion may be modifiedB.Each is below materiality, so no action is neededC.Only the ₹90,000 item needs correctingD.The auditor must issue a disclaimer of opinion

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Small misstatements that add up

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