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In addition to direct impacts upon the financial statements, the auditor also needs to consider ...

In addition to direct impacts upon the financial statements, the auditor also needs to consider indirect effects. An assessment of client objectives and strategies can reveal issues that could lower income or cause contingent liabilities. Which of the following could cause lost sales, increases in warranty expenses and product liability claims?
A) poor product quality
B) excessive advertising
C) ineffective projections
D) inaccurate budgets

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Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

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