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bezimeni [28]
3 years ago
9

While assessing the risks of material misstatement, auditors identify risks, relate risk to what could go wrong, consider the ma

gnitude of risks, and:
A) Consider the complexity of the transactions involved.
B) Consider the likelihood that the risks could result in material misstatements.
C) Assess the risk of misstatements due to illegal acts.
D) Determine materiality levels.
Business
1 answer:
Harman [31]3 years ago
5 0

Answer:

Consider the likelihood that the risks could result in material misstatements.

Explanation:

The risk of material misstatement is the risk that the financial statements of an organization have been misstated to a material degree. This risk is assessed by auditors at the following:  

At the assertion level. This is further subdivided into inherent risk and control risk. Inherent risk is the susceptibility of an assertion to misstatement because of error or fraud, before considering controls. Control risk is the risk of misstatement that will not be prevented or detected by a reporting entity's internal controls.

At the financial statement level. Relates to the financial statements as a whole. This risk is more likely when there is a possibility of fraud.

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The number of days' sales in receivables is determined by dividing a.average accounts receivable by average daily sales. b.avera
klasskru [66]

Answer:

d.

Explanation:

Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.

‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.

Accounts receivable turnover is the ratio of net credit sales to average accounts receivable.  It can be calculated as:

Average accounts receivable = \frac{Beginning accounts receivable + Ending accounts receivable}{2}

Accounts turnover ratio = \frac{Net credit sales}{Average accounts receivable}

No. of days of sales in receivables can be derived using the below mentioned formula:

No. of days of sales in receivables = \frac{Number of days in a year}{Accounts turnover ratio}

8 0
3 years ago
1. Suppose you owned a portfolio consisting entirely of long-term U.S. government bonds. Would your portfolio be riskless?
Ilya [14]

Answer:

<em>In theory, both are riskless but in practicality they aren't completely risk free.</em>

Explanation:

<em>In investment theory</em>, the investment in government bonds is <em>riskless </em>, irrespective of the investment maturity period because they are backed by the government.

However, <em>in practicality</em> every investment involves risk whether it's a short term or long term. However, a short term investment like the one specified in <em>statement 2</em> involves lower time frame and thereby lower volatility, hence it implies <em>lower risk</em>. The investment specified in <em>statement 1</em> is of longer term and hence can involve higher volatility, hence it implies <em>higher risk.</em>

<em><u>Note</u></em><em>- All the governments are prone to risk practically</em> because they are also part of the global financial and economic system and hence, they have to manage their budget balances prudently. Every investment thereby involves <em>risk</em>, it's just the <em>financial backing</em> of the <em>government financial</em> <em>instruments</em> which makes them less risky as compared to the other financial instruments.  

7 0
3 years ago
__ is the first phase of communication?
koban [17]

Answer:

initiation of communication by the sender

Explanation:

3 0
3 years ago
Read 2 more answers
Typical housing lease may require a tenant to
Oxana [17]
There is a lot of things that a typical lease might include such as

1. Do not remodel, whether it be construction or a paint job without consent from your landlord
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5 0
4 years ago
Some countries use market-based systems to help control access to fisheries. One such program is the
klasskru [66]

Answer:

individual transfer rights system.

Explanation:

Some countries use market-based systems to help control access to fisheries. One such program is the individual transfer rights system.

An individual transfer rights (ITR) system can be defined as a system in which the government of a particular country gives each fishing vessel or owner a specific percentage of the total fish allowable to be caught each year.

7 0
3 years ago
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