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Based on professional judgment an auditor establishes that if the amount of error or omission is within 2% of total assets, it is not considered as misstatement. Assume that the total assets of the entity are OMR 100,000. Current Assets are overstated by OMR 1,000. Does it amount to material misstatement? O a. None of the options O b. Unable to decide as the data is inadequate O c. Yes, as the percentage of misstated amount is beyond 2% of total assets O d. No, as the percentage of misstated amount is within 2% of total assets

Based on professional judgment an auditor establishes that if the amount of error or omission is within 2% of total assets, it is not considered as misstatement. Assume that the total assets of the entity are OMR 100,000. Current Assets are overstated by OMR 1,000. Does it amount to material misstatement? O a. None of the options O b. Unable to decide as the data is inadequate O c. Yes, as the percentage of misstated amount is beyond 2% of total assets O d. No, as the percentage of misstated amount is within 2% of total assets

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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44-Based on professional judgment an auditor establishes that if the amount of error or omission is within 2% of total assets, it is not considered as misstatement. Assume that the total assets of the entity are OMR 100,000. Current Assets are overstated by OMR 1,000. Does it amount to material misstatement? O a. None of the options O b. Unable to decide as the data is inadequate O c. Yes, as the percentage of misstated amount is beyond 2% of total assets O d. No, as the percentage of misstated amount is within 2% of total assets
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