The Auditing Standards Have Listed Several Circumstances That Might Cause

question 17

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 compliance with 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 employees compensation
• E)the effect of misclassifying income between operating and nonrecurring
• F)both A and B
• G)both B and C
• H)both D and E

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Definitions:

Replicable Results

Outcomes of experimental studies or research that can be consistently reproduced under the same conditions.

Procedures

A series of actions or steps taken in order to achieve a particular end, often in a scientific or systematic manner.

Informed Consent

A process ensuring that a person fully understands the risks, benefits, and alternatives of a procedure or participation in research, voluntarily agreeing to it.

Ethical Guidelines

Standards designed to guide behavior and practice in various fields, ensuring integrity and the welfare of participants.