Question: a. Which accounts may be most susceptible to overstatement? To understatement? b. Why do you think a company might permit asset accounts to be understated?

a. Which accounts may be most susceptible to overstatement? To understatement?

b. Why do you think a company might permit asset accounts to be understated?

c. Why do you think a company might permit liability accounts to be overstated?

d. Which direction of misstatement is most likely: income overstatement or income understatement?

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