In the Planning Process,the Auditor Assesses the Risk That Misstatements

question 6

Multiple Choice

In the planning process,the auditor assesses the risk that misstatements have occurred in the financial statements.The source of misstatements includes

• A)the use of auditing standards that the auditor may consider unreasonable or inappropriate
• B)inaccuracies in gathering or processing data used to prepare the financial statements
• C)differences between the amount or classification of a financial statement item and what should have been reported under generally accepted auditing standards
• D)omissions of financial statement explanations
• E)financial statement disclosure that are not in accordance with generally accepted auditing standards

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Definitions:

Malpractice Case

A legal case brought against a professional, such as a doctor or lawyer, for negligence or incompetence.

Motion for a New Trial

A legal request made by a party in a trial to have the trial heard again, either in part or in full, due to errors or new evidence.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the wrongful act of another.

Verdict

The formal decision or finding made by a jury or judge on the matters submitted to them in a trial.