The Dollar Amount of Some Misstatements Cannot Be Accurately Measured

The dollar amount of some misstatements cannot be accurately measured.If,for example,the client was unwilling to disclose an existing lawsuit,the materiality question the auditor must evaluate in such a situation is

A) what effect will it have on net income?
B) how will it affect management's future decisions?
C) will it increase the auditor's exposure to lawsuits?
D) what effect will it have on financial statement users?

Correct Answer:

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