Most auditors assess the risk of material misstatement as high for related parties and related-party transactions because A. of the unique classification of related-party transactions required on the income statement. B. of the lack of independence between the parties. C. of the unique classification of related-party transactions required on the balance sheet. D. it is required by generally accepted accounting principles.

Question

Business

Issac Schmidt

1 March, 13:54

Most auditors assess the risk of material misstatement as high for related parties and related-party transactions because A. of the unique classification of related-party transactions required on the income statement. B. of the lack of independence between the parties. C. of the unique classification of related-party transactions required on the balance sheet. D. it is required by generally accepted accounting principles.

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Terrell Frost · Answer 1

D. it is required by generally accepted accounting principles.

Explanation:

it is required by generally accepted accounting principles. This generally accepted accounting principles are accounting standards followed by accountants in US and Canada.