Question

Give examples of qualitative characteristics an auditor might take into account when deciding if a particular...

Give examples of qualitative characteristics an auditor might take into account when deciding if a particular item in the financial statements is materially misstated.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Qualitative characteristics an auditor might take into account while deciding if a particular item in the financial statements is materially misstated are as follows -

1) Selection and application of relevant accounting policies.

2) Business process and controls present around the process.

3) Monitoring of process present around the items in the financial statements.

4) Information systems and its risk assessment procedure.

5) Reporting of deviations if any with respect to the process, controls and application of accounting policies.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When the auditor concludes that the financial statements are materially misstated and are not prepared in...
When the auditor concludes that the financial statements are materially misstated and are not prepared in accordance with GAAP, should the auditor revise the financial statements since they are there for the shareholders? Why or why not?
Please give a thorough explanation. Discuss the characteristics of qualitative research studies and when qualitative research...
Please give a thorough explanation. Discuss the characteristics of qualitative research studies and when qualitative research is appropriate and not appropriate. It is important to understand how qualitative research differs from quantitative research, and the descriptive power inherent in the language used in this type of research.
Foundational accounting principles and qualitative characteristics - matching Listed below are several foundational accounting principles and...
Foundational accounting principles and qualitative characteristics - matching Listed below are several foundational accounting principles and qualitative characteristics. Note that each item may be used more than once or not at all.        Economic entity assumption       Matching principle        Going concern assumption       Full disclosure principle        Monetary unit assumption       Relevance        Periodicity assumption       Control        Historical cost principle       Comparability        Revenue recognition principle Materiality       Representational faithfulness Please write...
Materiality has both qualitative and quantitative aspects, meaning that the nature of the item and its...
Materiality has both qualitative and quantitative aspects, meaning that the nature of the item and its relative size, is considered. This concept refers to the relative significance of an amount or informative disclosure, proper presentation of financial position, and the results of operations. When misstatement affects the interest of the relying person with certain information, such misstatement will be material. Hence, auditor mainly concentrates efforts in proportion to degrees of materiality and relative risk and disregards immaterial items. The relevant...
ABCable, Inc. is a publicly traded cable provider. Among its current services are providing cable services,...
ABCable, Inc. is a publicly traded cable provider. Among its current services are providing cable services, including television, Internet access and local telephone service. ABCable experienced rapid growth in all markets beginning in the late 1990s and continuing through now. While revenues continue to grow, income is showing signs of declining to a level beneath that expected by analysts who follow the company. In an analysis of why, Sally Bens, financial vice president, discovered that maintenance of cable systems has...
Read the LDC Cloud Systems Case Study and answer the question below: THE EMAIL The email...
Read the LDC Cloud Systems Case Study and answer the question below: THE EMAIL The email had been sent from one mid-level accounting manager at headquarters to another about six months earlier. The message read: Bill, here are the accounting issues I mentioned, and as you know, some of these go back a ways. The data that supports these accounts are not always clear and keep changing, and we are not sure what the correct accounting treatment is for these...
What are your top 3 take aways from this article? Technology is no longer just for...
What are your top 3 take aways from this article? Technology is no longer just for geeks. The internet has changed everything, including marketing. Be they small, medium or large, social media grants all companies an equal playing field on which to organically reach new customers. However, success will always ride on the marketing strategy employed. Obviously, larger companies have the advantage of bigger budgets and more resources. But that doesn’t mean social media for small business owners can’t compete...
When is a hypothesis considered scientific? a. when it is based on something other than observation...
When is a hypothesis considered scientific? a. when it is based on something other than observation b. when it can be tested and is refutable c. when it relies on anecdotal evidence d. when it relies on mystical explanations e. All hypotheses are considered scientific until experiments determine otherwise. 3. Of the following, which is the earliest step in the scientific process? a. generating a hypothesis b. analyzing data c. conducting an experiment d. drawing a conclusion e. developing a...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT