Due to Qualitative Factors, Certain Types of Misstatements Are Likely

question 58

Essay

Due to qualitative factors, certain types of misstatements are likely to be more important to users than others, even if the dollar amounts are the same. Identify two qualitative factors that might significantly affect an auditor's materiality judgment, and give an example of each.

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Definitions:

Areas Of Competence

Specific fields or domains in which an individual or organization possesses expertise and proficiency.

Organize Résumé

The process of arranging or structuring a résumé in a logical and clear manner to highlight relevant information.

Functionally

In a manner that relates to the practical use or purpose of something rather than its aesthetics.

Chronologically

In order of time, from the earliest to the latest.