Which of the following is least likely to be a factor that might indicate to an auditor that an identified risk of misstatement requires special audit consideration? A)Complex calculations are involved. B)The rate of technological change is moderate in the industry. C)The potential for fraud seems high. D)Various subjective methods of application of a key accounting policy exist.

Question

Quizplus · Accepted Answer

The rate of technological change in an industry is generally not a significant factor in assessing the risk of misstatement. The other options are typically indications of higher risk and would require special audit consideration. Complex calculations may lead to errors, high potential for fraud requires increased scrutiny, and subjective applications of accounting policies may lead to inconsistencies and misstatements.

Which of the Following Is Least likely to Be a Factor