The risk of distortion is defined in the presence of conflicts, unusual relationships, and transactions with related parties. Moreover, there is the existence of specific operations that are taken into account within more than one component. Furthermore, there is a frequent change of auditors of the financial statements of the components. Therefore, the risk of “non-detection” consists of the risk of undetected moments based on the results of analytical and operational procedures.
For the following situation, explain how the risk of material misstatement should be assessed and what effect that assessment will have on detection risk. The First National Bank of Pond City has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue has related to the bank’s reserve for loan losses and the value of the collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves.
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Academic.Tips. (2023) 'For the following situation, explain how the risk of material misstatement should be assessed and what effect that assessment will have on detection risk. The First National Bank of Pond City has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue has related to the bank's reserve for loan losses and the value of the collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves'. 12 February.
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Academic.Tips. (2023, February 12). For the following situation, explain how the risk of material misstatement should be assessed and what effect that assessment will have on detection risk. The First National Bank of Pond City has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue has related to the bank's reserve for loan losses and the value of the collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves. https://academic.tips/question/for-the-following-situation-explain-how-the-risk-of-material-misstatement-should-be-assessed-and-what-effect-that-assessment-will-have-on-detection-risk-the-first-national-bank-of-pond-city-has-been/
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Academic.Tips. 2023. "For the following situation, explain how the risk of material misstatement should be assessed and what effect that assessment will have on detection risk. The First National Bank of Pond City has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue has related to the bank's reserve for loan losses and the value of the collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves." February 12, 2023. https://academic.tips/question/for-the-following-situation-explain-how-the-risk-of-material-misstatement-should-be-assessed-and-what-effect-that-assessment-will-have-on-detection-risk-the-first-national-bank-of-pond-city-has-been/.
1. Academic.Tips. "For the following situation, explain how the risk of material misstatement should be assessed and what effect that assessment will have on detection risk. The First National Bank of Pond City has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue has related to the bank's reserve for loan losses and the value of the collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves." February 12, 2023. https://academic.tips/question/for-the-following-situation-explain-how-the-risk-of-material-misstatement-should-be-assessed-and-what-effect-that-assessment-will-have-on-detection-risk-the-first-national-bank-of-pond-city-has-been/.
Bibliography
Academic.Tips. "For the following situation, explain how the risk of material misstatement should be assessed and what effect that assessment will have on detection risk. The First National Bank of Pond City has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue has related to the bank's reserve for loan losses and the value of the collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves." February 12, 2023. https://academic.tips/question/for-the-following-situation-explain-how-the-risk-of-material-misstatement-should-be-assessed-and-what-effect-that-assessment-will-have-on-detection-risk-the-first-national-bank-of-pond-city-has-been/.
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"For the following situation, explain how the risk of material misstatement should be assessed and what effect that assessment will have on detection risk. The First National Bank of Pond City has been your client for the past two years. During that period, you have had numerous arguments with the president and the controller over a number of accounting issues. The major issue has related to the bank's reserve for loan losses and the value of the collateral. Your prior audits have indicated that a significant adjustment is required each year to the loan loss reserves." Academic.Tips, 12 Feb. 2023, academic.tips/question/for-the-following-situation-explain-how-the-risk-of-material-misstatement-should-be-assessed-and-what-effect-that-assessment-will-have-on-detection-risk-the-first-national-bank-of-pond-city-has-been/.
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