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Describe how affect the risk of a material misstatement

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Reference no: EM132740491

Problem 1: Consider each of the following items and describe how they affect the risk of a material misstatement:

1. Taxation calculations are extremely complex

2. The entity is a computer manufacturer

3. Management's rewards are heavily dependent on financial results

4. Provisions are a material liability

5. The entity has just opened a major retail outlet in the united states.

Reference no: EM132740491

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