An auditor must identify the relevant assertions about each significant financial statement account and disclosure and t

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An auditor must identify the relevantassertions about each significant financial statement accountand disclosure and then gather evidence to conclude whether amaterial misstatement exists for each assertion. The natureof each financial statement account and disclosure contributesto the likelihood that a material misstatementexists.
Please discuss below questions (following the requirements onthe syllabus):
a. In general, which accounts are most susceptible tooverstatement? To understatement?
b. Why do you think a company could permit asset accounts to beunderstated?
c. Why do you think a company could permit liability accounts tobe overstated?
d. Which direction of misstatement is most likely: incomeoverstatement or income understatement?