Misstatement of financial statements threatens the foundation of financial reporting process and jeopardizes the integrity of...

 

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Misstatement of financial statements threatens the foundation of financial reporting process and jeopardizes the integrity of the auditing function. These misstatements can result from errors or fraud. Signposts that fraud may exist need to be ingrained in the DNA of auditors. Explain the nature and causes of misstatements in the financial statement with suitable examples. (you are required to identify the nature of misstatements in financial statement; compare error, fraud and illegal act). Misstatement of financial statements threatens the foundation of financial reporting process and jeopardizes the integrity of the auditing function. These misstatements can result from errors or fraud. Signposts that fraud may exist need to be ingrained in the DNA of auditors. Explain the nature and causes of misstatements in the financial statement with suitable examples. (you are required to identify the nature of misstatements in financial statement; compare error, fraud and illegal act).

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Errors and fraudulent activity are the two primary categories of inaccuracies that can be found in financial statements During the process of preparing the financial statements it is possible for unin... View the full answer