PSA requires that the auditor should obtain
an understanding of the entity's objectives
and strategies, and the related business
risks that may result in material
misstatement of the financial statements.
Which of the following is not an example of
business risks that may have financial
consequences and may affect the financial
statements?
a. A contracting customer base due to
industry consolidation that may increase
the risk of misstatement associated with
the valuation of receivables.
b. Contracting economy.
c. New accounting requirements.
d. Use of new IT
an understanding of the entity's objectives
and strategies, and the related business
risks that may result in material
misstatement of the financial statements.
Which of the following is not an example of
business risks that may have financial
consequences and may affect the financial
statements?
a. A contracting customer base due to
industry consolidation that may increase
the risk of misstatement associated with
the valuation of receivables.
b. Contracting economy.
c. New accounting requirements.
d. Use of new IT