Final answer:
Uncorrected misstatements in financial statements should be ignored if immaterial but must be adjusted or disclosed if material. It is not the auditor's responsibility to correct them automatically; they should be addressed by the management.
Step-by-step explanation:
The subject of the question relates to the field of accounting and audit procedures, specifically concerning the treatment of uncorrected misstatements in financial statements. In the context of an audit, uncorrected misstatements can be material or immaterial. If the effects of these misstatements are considered immaterial, they may be ignored as they are unlikely to influence the economic decisions of users of the financial statements. However, if they are considered to be material, they should be adjusted or disclosed accordingly. Material misstatements must be corrected or disclosed to provide a true and fair view of the financial statements, as they have the potential to mislead the users of the information. It is not the auditor's role to automatically correct these misstatements; rather, it is the management's responsibility, with the auditor to evaluate and insist on proper disclosure or adjustment.