Why should auditors be particularly concerned with "miscellaneous," "other," and "clearing" accounts classified as revenues or expenses?
A)These accounts are likely to relate to going-concern matters.
B)These accounts are often more difficult to audit using normal substantive procedures.
C)These accounts may represent attempts of earnings management.
D)These accounts are likely to require the assistance of a specialist.

Question

Quizplus · Accepted Answer

Miscellaneous, other, and clearing accounts classified as revenues or expenses may be used by management to manipulate earnings through earnings management techniques. This makes them a potential area of concern for auditors.

Why Should Auditors Be Particularly Concerned with "Miscellaneous," "Other," and "Clearing