Explain the procedural steps in which accountants or auditors would follow

Accounting
Tutor: None Selected Time limit: 1 Day

Explain the procedural steps in which accountants or auditors would follow to identify where material misstatement of receivables and associated gross income has occurred and Explain.

Nov 26th, 2014

The three steps which an auditor should follow in such a situation are:

1.  Evaluate the type of material misstatement(s) that may occur, such as evaluating whether a risk is a financial statement level risk or an assertion level risk.

2.  Evaluate the magnitude of the material misstatement

3.  Evaluate the likelihood of material misstatement to determine whether the probability of misstatement is very probable or the probability of misstatement is remote.


Nov 26th, 2014

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Nov 26th, 2014
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Nov 26th, 2014
Dec 4th, 2016
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