Question: As an auditor, there is always a concern surrounding misstatements. Evaluate the following thought Only misstatements that surpass the materiality threshold should be of concern.

  • As an auditor, there is always a concern surrounding misstatements. Evaluate the following thought "Only misstatements that surpass the materiality threshold should be of concern."
  • What are the main differences between Type I and Type II subsequent events? How is each addressed by the auditor as they try to complete the audit?
  • How does an auditor decide which clients to accept? Are there any red flags that would indicate that a client would not be desirable to pursue?

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