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

question 118

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 audit the financial statements
• C)differences between the amount or classification of a financial statement item and what should have been reported under generally accepted accounting principles
• 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:

Business Trip

A journey taken for work or corporate purposes, excluding daily commutes, involving travel outside the normal work area.

Transfer Of Title

The legal process of transferring property ownership from one party to another.

Personal Property

Personal property refers to movable assets or belongings that are not fixed to one location, such as furniture, vehicles, and electronic equipment, in contrast to real property.

Deed

A legal document that represents the ownership of real estate or property, which is transferred from one party to another.