The Auditing Standards Have Listed Several Circumstances That Might Cause

question 83

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

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Definitions:

Intergroup Bargaining

Negotiation processes between different groups aimed at resolving conflicts or achieving mutual agreements.

Conflict Resolution

The process of resolving a dispute or disagreement through effective communication, negotiation, or other methods to reach an agreement.

Cooperative Gestures

Actions or behaviors that demonstrate a willingness to work jointly towards mutual or shared goals.

Intergroup Emotion Theory

A psychological theory that explains how individuals' emotions are influenced by their identification with social groups, impacting intergroup interactions.