This second statement is misleading because it implies an audit does not provide any assurance of detection of material misstatements
caused by fraud.
6662 to any portion of an underpayment attributable to a substantial valuation misstatement
6662-5(g) provides that when an asset's true value or adjusted basis is zero, any misstatement
is considered to be 400% or more of the correct amount and is automatically deemed to be a gross valuation misstatement
, and Woods's and McCombs's misstatements
of their partnership bases were thus gross valuation misstatements
subject to .
Companies are strictly liable under Section 11 for their misstatements
when issuing securities; overturning Basic would not change this.
We have adopted a new approach, which is we do not leave any misstatement
or inaccuracy unanswered.
Though financial and nonfinancial misstatements
are generally governed
Audit standards state, "The auditor has a responsibility to plan and perform the audit to provide reasonable assurance about whether the financial statements are free from material misstatement
, whether caused by error or fraud.
While changes in financial statement accounts can signal a potential misstatement
, situations in which an account balance remains relatively static from period to period can also signal potential misstatements
The assessment of control risk at 30 percentage because the control structure proved effective in prior years and few misstatements
were detected with tests of control.
The goal of the third group, substantive procedures, is to directly detect material misstatements
Directors and officers' (D & O) liability coverage needs to be analyzed in terms of potential exclusions and possible attempts by insurers to rescind for misstatements
In evaluating audit findings, the auditor must include the effects of prior period misstatements
not booked by the client due to immateriality, in addition to considering the qualitative aspects of the accumulated misstatements