Wednesday, January 13, 2010

Objectives, strategies, and related business risks that may result in material misstatements

Objectives, strategies, and business risks may be defined as follows :

An entitiy's objectives are the overall plans for the entity as defined by those charge with governance and management.
Strategies are the operational approaches by which management intends to achieve its objectives.
Business risks result from significant conditions, events, circumstances, or actions, that could adversely affect the entitiy's ability to achieve its objectives and execute its strategies.

Understanding for entitiy's objectives, strategies and strategies and business risks are important because the risks of material misstatement is often associated with an entitiy's business risks. Following are several examples of how an entity's business risks may be associated with the risk of material misstatement in the financial statements.

- If an entity is unable to accomplish a strategy associated with obtaining a significant percent of revenues from new products (such as obtaining FDA approval for new drugs developed by research and development), there may be an increased risk associated with revenue recognition (the exictence and occurance assertion) or with the impairement of development costs that may have been capitalized (valuation and allocation assertion)

- If an entity is planning to o private and to repurchase a significant portion of equity from existing owners, management may have an incentive to understate earnings. In this case the auditor might be concerned that all sales are recorded expenses are appropriate (the occurrence of expenses)


sherlina halim said...

Pengen yang lebih seru ...
Ayo kunjungi
Buktikan sendiri ..

Real Play = Real Money

- Bonus Promo Red Card pertandingan manapun .
- Bonus Mixparlay .
- Bonus Tangkasnet setiap hari .
- New Produk Sabung Ayam ( minimal bet sangat ringan ) .
- Referal 5 + 1 % ( seumur hidup ) .
- Cash Back up to 10 % .
- Bonus Royalty Rewards setiap bulan .

untuk Informasi lebih jelasnya silahkan hubungi CS kami :
- YM :
- WHATSAPP : +63 905 213 7234
- WECHAT : asianbet_77
- SMS CENTER : +63 905 209 8162
- PIN BB : 2B4BB06A / 28339A41

Salam Admin ,

Dr Purva Pius said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:( Thank you.


1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
11.Monthly Income…………..

Email Kindly Contact:

urgent cash offer said...

Are you in need of a loan? Do you want to pay off your bills? Do you want to be financially stable? All you have to do is to contact us for more information on how to get started and get the loan you desire. This offer is open to all that will be able to repay back in due time. Note-that repayment time frame is negotiable and at interest rate of 3% just email us