Identify Quantitative and Qualitative Considerations That Are Taken into Account

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The Answer is Examples of quantitative and qualitative considerations include:
a) the risk of additional misstatements remaining undetected
b) the effects of identified misstatements on the client's compliance with covenants under debt or similar agreements
c) whether the proposed corrections result from an error or are the result of a judgmental misstatement between the client's and the auditor's application of accounting policies
d) the turnaround effect on the current year's financial statements of uncorrected misstatements identified in the prior year
e) the likelihood that recurring differences, which currently are immaterial, will have a material effect in the future
f) the sensitivity of the circumstances surrounding the misstatements, for example, the implications of differences involving fraud and possible illegal acts, or violations of contractual provisions
g) the significance of the financial statement elements affected by the misstatements
h) the significance of the misstatements relative to known user needs, for example, the magnifying effects of the misstatements on the calculation of a purchase price in a transfer of interests (buy/sell agreement)
i) the effect of the misstatements on segment information or on another portion of the client's business that has been identified as playing a significant role in the client's operations or profitability
j) the effects of offsetting misstatements in different financial statement captions (or balance names within the financial statements, for example, cash at bank, prepayments, payables)

Identify Quantitative and Qualitative Considerations That Are Taken into Account

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