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
An auditor must understand five components of internal control to adequately assess an organization's risk of material misstatement
of the financial statements.
Our study is motivated by the recent instances of financial statement 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
If the auditor believes that any potentially material misstatements
identified during the audit are a result of fraud, the auditor should: attempt to do the following: obtain additional evidential matter to make a definitive decision about the issue; consider the implications for other aspects of the audit; discuss the matter with an appropriate level of management (at least one level above those involved, and with senior management and the audit committee); and suggest that the client consult with legal counsel (if appropriate).