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For SD or MW
Slide 3
- There are several factors that may affect the likelihood that a CONTROL could FAIL to prevent or detect a misstatement.
- One such factor is THE NATURE OF FS ACCTS, DISCLOSURES, AND ASSERTIONS INVOLVED. FOR EXAMPLE-suspense accts and related party transactions involve greater risks.
- The susceptibility of the related assets or liabilities to fraud or loss.
- The possible future consequences of the deficiency.
- The subjectivity and complexity of the amount involved and the extent of judgment needed to determine that amount.
-Some others include:
- The interaction or relationship of the control with other controls
- The interaction of a CD with another CD...
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