The Auditing Standards Have Listed Several Circumstances That Might Cause

question 12

Multiple Choice

The auditing standards have listed several circumstances that might cause quantitatively immaterial misstatements to be judged material.These include

• A)misstatements that change income into a loss
• B)the effect of the misstatement on loan covenants,contractual agreements and regulatory provisions
• C)the existence of statutory or regulatory reporting requirements that might have an impact on materiality levels
• D)misstatements that have the effect of increasing management's compensation
• E)the effect of misclassifying income between operating and nonrecurring
• F)both A and B
• G)both C and D
• H)both D and E

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Definitions:

Open Innovation

A business model that encourages companies to use both internal and external ideas and paths to market when advancing their technology.

Crowdsourcing

The practice of obtaining ideas, services, or content by soliciting contributions from a large group of people, typically from an online community.

Crowdsourcing

is the practice of obtaining ideas, services, or content by soliciting contributions from a large group of people, especially from an online community.

Innovative Ideas

Original and creative concepts that bring new solutions to problems or introduce unique improvements.