When assessing the risk of material misstatement, which of the following would the auditor consider to be a management motivation for account misstatements?
A) transaction processing of high volumes of material transactions
B) IT risks and vulnerabilities
C) share market performance and debt covenants
D) processes affecting major estimates and adjusting entries

Question

Quizplus · Accepted Answer

Management may have motivations to misstate accounts to present a more favorable picture of the company's financial health, which can be influenced by share market performance and the need to meet debt covenants.

When Assessing the Risk of Material Misstatement, Which of the Following