An Account Is at a Higher Risk of Misstatement When

question 16

Multiple Choice

An account is at a higher risk of misstatement when it requires

• A) complex calculations.
• B) estimation.
• C) both a and b
• D) simple valuation techniques.

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Definitions:

Indirect Approach

A communication strategy where the main point or request is presented after providing background information or justification.

Company Policy

Guidelines and rules that outline how a company and its employees should operate within and represent the organization.

Apologetic Tone

A manner of communication that expresses regret, remorse, or sorrow, often used in situations where there has been a mistake or misunderstanding.

Negative Messages

Communications that deliver bad news, rejections, or potentially upsetting information in a tactful and considerate manner.