Are any incentives for client to deliberately misstate

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Assume that you are a new accounting graduate that has obtained a position at Grant Thornton Australia in Sydney. Your client informs you that they have discovered that depreciation expense of their company for 2019 was understated by $20 000. This client seeks your advice on whether this retrospective restatement to correct prior-period errors should be included in their comprehensive income in 2019.

Problem 1: Are there any incentives for your client to deliberately misstate the depreciation charges in the previous period?

Reference no: EM132641160

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