Show the impact of the analysis you have performed within task 3 on the materiality?

Risk factor	1	2	3	4	5	5
	Very Low	Low	Medium	High	Very hig
Management issues (8)
The client’s financial position			3
The client’s liquidity		2
The   extent   to    which   the         financial statements are used by a third party		2
The experience and the management knowledge of those in charge with the governance				4
The attitude of the management towards the financial reporting			3
The frequent change of the auditors					5
The previous experience related to the management control capability					5
Proper remuneration of the activities, in accordance with their nature and associated performance	1
Accounting environment (9)
Skills of the accounting employees				4
Attitude of     Accounting Department’s personnel			3
Risk of inaccurate, inadequate or overdue financial information					5
Previous proof on earnings management			3
Frequency and materiality of transactions which are difficult to audit					5
New or complex accounting policies					5
Complex    company    and                  accounting structure, associated to the size of the client				4
Breaks or falls of the accounting system				4
Evidence suggesting that problems may arise, associated to the manner in which operations are accounted for		2

Answer rating: 100% (QA)

Management Issues 8 The clients financial position Rating 3 Impact A mediumrated risk may have a moderate impact on materiality It suggests that the financial position might be affected to some extent ... View the full answer