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:

Mortgage Payment

A regular payment made towards a mortgage loan, typically including both principal and interest components.

Apothem

A line segment that goes through the center of a polygon that is perpendicular to a side.

Octagon

A geometric figure with eight sides and eight angles.

Gazebo

A freestanding open structure, often found in gardens and parks, used for relaxation or entertainment.