Question: Why is fraud that is committed by management always considered material, even if the amount is not quantitatively material?

Why is fraud that is committed by management always considered material, even if the amount is not quantitatively material?

Step by Step Solution

★★★★★

3.50 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The main reason management fraud is considered material regardless of the amount is beca... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

395-B-A-A-A-N (3029).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

Why is fraud detection not always relevant to applying SAS No. 99?

Q:

Why is it necessary that top management be committed as a prerequisite to benchmarking?

Q:

Why is financial statement fraud often considered a complex fraud?

Q:

Why is fraud that is committed by management always considered material, even if the amount is not quantitatively material? 2. Distinguish fraudulent financial reporting from misappropriation of...

Q:

The relevant documents:- 1. Consolidated financial statement POSTMEDIA NETWORK CANADA CORP. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED AUGUST 31, 2022 AND 2021 Approved for issuance:...

Q:

Which of the following statements are correct? Potential errors in fixed assets and deferred charges are considered more important than potential errors in other accounts. An illegal payment may or...

Q:

Business Conduct and Ethics Code Table of Contents A Message From John Watson...................................................................1 The Chevron...

Q:

In December 1995, the flamboyant entrepreneur Michael "Mickey" Monus, formerly president and chief operating officer (COO) of the deep-discount retail chain PharMor, Inc., was sentenced to 19 years...

Q:

Need help with these multiple choice questions for internal audit final exam. Due in 2 hours. QUESTION 1 RsQ_004Without management direction and assumption of responsibility, it would be...

Q:

please type your response Summarize the facts of the case. About this case study: This case study was developed as a joint effort by the Center for Audit Quality, Financial Executives International,...

Q:

Sheffield Corporation reports net income of $702,250 and a weighted-average of 265,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock. (Round answer...

Q:

Distinguish between intra-industry trade and interindustry trade. What are some major determinants of intra-industry trade?

Q:

You have built a simple LBO model based on the acquisition of a private, family - held company in Germany for 1 0 x EBITDA with a sale for 1 0 x EBITDA in Year 5 . The deal uses Senior Bank Debt for...

Q:

Reliability is the requirement that a measurement perform the same way over time.

Q:

Visit the SECs website ( www. sec.gov), and identify a company that has been recently cited for problems related to property, plant, and equipment or lease accounting ( e. g., in years past, many...

Q:

Why does the auditor generally follow a substantive strategy when auditing long-term debt and capital accounts? Under what conditions might the auditor follow a reliance strategy?

Q:

What are the most important assertions for long- term debt? What documents would normally contain the authorization to issue long-term debt?

Q:

You wish to test the following claim (Ha) at a significance level of a = 0.005. Ho: M = 58.3 Ha: M # 58.3 You believe the population is normally distributed, but you do not know the standard...

Q:

Suppose you want to hedge a $330 million bond portfolio with a duration of 5.5 years using 10-year Treasury note futures with a duration of 7 years, a futures price of 107, and 9 months to...

Q:

Can you explain it step by step please