Auditing: Evaluating Undetected Misstatements & Qualitative Factors

In step 1 when considering the possibility of undetected misstatements, you consider Qualitative Factors to determine whether the nature of accumulated misstatements and the circumstances of their occurrence indicate other misstatements not yet detected might exist that, in combination with the accumulated misstatements, could be material.

In this step, which misstatements do you review?

A. Corrected and uncorrected misstatements.

B. Corrected misstatements.

C. Uncorrected misstatements.

D. Projected misstatements.

C. Uncorrected misstatements.