The Auditing Standards Have Listed Several Circumstances That Might Cause

question 64

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 a loss into income
• 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 quantitative levels
• D)misstatements that have the effect of increasing employees compensation
• E)misstatements that involve fraud,illegal acts,violations of contracts,and conflicts of interest
• F)both A and E
• G)both B and C
• H)both D and E

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Definitions:

Components

The distinct parts or elements that make up a whole system or object.

Equitable

Equitable means characterized by fairness, impartiality, and justice in the way people are treated or decisions are made.

Workplace Practices

Established ways or methods of working that are accepted and followed within a workplace or organization.

Joint Goal Setting

The process in which two or more parties collaborate to define and agree upon common objectives.