ETHICAL OBLIGATIONS & DECISION MAKING I
4th Edition
ISBN: 9781308488370
Author: Mintz
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter MC, Problem 1.1Q
To determine
Explain the reason behind the conclusion of identifying ‘the audit as posing much greater risk than normal’.
Expert Solution & Answer
Explanation of Solution
Audit firm D, after several years of the determined examination has concluded that company A was exposed for committing fraud or misstatement. Audit firm D has reached to this conclusion by recognizing the following risk factors:
- Company ‘A’ work with an ‘unpredictable industry’. It had countless elements to work with also it expanded very quickly.
- Noteworthy obligations were conveyed by the organization confirming the obligation contracts by reaching to most of its ‘money related assets’.
- Without paying its controls management of the organization gathered into as small gathering.
- The organization had a tendency to forcefully change its book keeping principles to acknowledge the higher amount of hazards.
- The organization had occupied large exchanges from its subsidiary that audit firm‘D’ wouldn’t be inspecting.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Chapter MC Solutions
ETHICAL OBLIGATIONS & DECISION MAKING I
Knowledge Booster
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education