Misstatements in the financial statements can result from errors or fraud and may consist of any of the following: An inaccuracy in gathering or processing data from which financial statements are prepared. A difference between the amount, classification, or presentation of a reported financial statement element, account, or item and the way that it should have been reflected under GAAP. The omission of a financial statement element, account, or item. A financial statement disclosure that is not presented in conformity with GAAP. The omission of information required to be disclosed in conformity with GAAP. An incorrect accounting estimate due to oversight, misrepresentation of facts, or fraud. Management’s judgments concerning an accounting estimate or the selection or application of accounting policies that the auditor may consider unreasonable or inappropriate. What steps would you take if you discover 1 of the above issues in a routine audit? Would you take the same steps if you discover all 7 issues above in a routine audit?
Misstatements in the financial statements can result from errors or fraud and may consist of any of the following:
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An inaccuracy in gathering or processing data from which financial statements are prepared.
-
A difference between the amount, classification, or presentation of a
reported financial statement element, account , or item and the way that it should have been reflected under GAAP. -
The omission of a financial statement element, account, or item.
-
A financial statement disclosure that is not presented in conformity with GAAP.
-
The omission of information required to be disclosed in conformity with GAAP.
-
An incorrect accounting estimate due to oversight, misrepresentation of facts, or fraud.
-
Management’s judgments concerning an accounting estimate or the selection or application of accounting policies that the auditor may consider unreasonable or inappropriate.
- What steps would you take if you discover 1 of the above issues in a routine audit?
- Would you take the same steps if you discover all 7 issues above in a routine audit?
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