An auditor must identify the relevant assertions about each significant financial statement account and disclosure and then gather evidence to conclude whether a material misstatement exists for each assertion. The nature of each financial statement account and disclosure contributes to the likelihood that a material misstatement exists. Required: a. For each of the following types of accounts, select whether it is more susceptible to understatement or overstatement errors. b. Why do you think a company could permit asset accounts to be understated? c. Why do you think a company could permit liability accounts to be overstated? d. Which direction of misstatement is most likely