Which of the following factors are relevant to the assessment of the risks of material misstatement...
Which of the following factors are relevant to the assessment of the risks of material misstatement associated with a particular location or business unit?
The existence of related party transactions.
Management's attempt to meet earnings per share growth rate goals.
Management's disregard for internal control.
Management's lack of interest in increasing the dividend paid on common stock.
Homework Answers
The risks of material misstatement assessment is more relevant when Management disregard for internal control.
There is a risk of fraud in case of the existence of related party transactions. Management's attempt to meet earnings per share growth rate goals and lack of interest in increasing the dividend paid on common stock do not involve any risk of material misstatement.
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Which of the following factors are relevant to the assessment of
the risks of material misstatement...
Which of the following is a false statement about the assessment of the risks of material...
Which of the following is a false statement about the assessment of the risks of material misstatement? A. The assessed levels will affect the nature, timing, and extent of substantive testing. B. The auditor may use certain tests of details of transactions concurrently as tests of controls. C. The ultimate purpose is to determine the operating effectiveness of controls. D. The auditor’s understanding of internal control should be documented.
1. Identify the relevant assertions and risks of material misstatement that are typically related to the...
1. Identify the relevant assertions and risks of material misstatement that are typically related to the cash balance. 2. Give examples of substantive procedures used to test cash and relate them to the relevant assertions.
Question 3 View Policies Current Attempt in Progress Which of the following factors most likely would...
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Apart from the Inventory account, which other accounts and assertions are at risk of material misstatement...
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1.Which of the following is not one of the steps the auditor must perform to assess...
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22. Which of the following factors most likely would heighten an auditor's concern about the risk...
22. Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting? a..The audit committee's approval of the initial selection of accounting principles. b..A lack of competition in the entity's industry, accompanied by increasing profit margins. c..Management's disclosure of unresolved litigation and contingent liabilities. d..Year-end adjustments by the entity that significantly affect financial results 23. Which of the following factors most likely would cause an accountant not to accept an engagement to...
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Auditing Related Party Transactions ABSTRACT As part of the risk assessment of a client firm, auditors...
Auditing Related Party Transactions ABSTRACT As part of the risk assessment of a client firm, auditors are required to evaluate the risks of material misstatement associated with related party transactions. Related party transactions may be evaluated at a higher risk of material misstatement as they may not occur under normal market settings or they may be motivated by an intent to perpetrate fraud. This case presents information about the related party transactions and other facts surrounding the audit of a...
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Question 3 View Policies Current Attempt in Progress Which of the following factors most likely would influence an auditor's determination of the auditability of an entity's financial statements? The complexity of the accounting system. The existence of related-party transactions. The adequacy of the accounting records. The operating effectiveness of control procedures.
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