Final answer:
If a misstatement is considered material, it could affect the decisions of users of financial statements if they are made aware of the misstatement. Material misstatements may lead an auditor to issue a modified opinion but not necessarily an immediate adverse opinion.
Step-by-step explanation:
If a misstatement is considered material, B) It could affect decisions that users make if the users are made aware of the misstatement.
In accounting and auditing, a misstatement is considered material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The assessment of what is material is a matter of professional judgment.
An auditor's opinion is based on whether the financial statements are presented fairly, in all material respects, in accordance with an applicable financial reporting framework. If a material misstatement is detected and not corrected, this may lead the auditor to issue a modified audit opinion. However, an adverse opinion is issued when the misstatements are both material and pervasive. Thus, not all material misstatements lead to an adverse opinion immediately.