American Hotel Income partnership essay

In complying to set down rules and regulations by the management, issues of fraud will be identified without accumulating more material misstatement. Going concern. Based on the report from the balance sheet laid before the management by the accounting department, in the year 2017,the current ratio of the firm stood at (68843/47839 which is approximately 1. 44 and in 2016,the ratio was (120872/25634)=4. 72,as compared to the industrial norm that is 2,the solvency ratio of the firm has weaken even though it is still positive but below the industrial norm. In these type of risk, an auditor may encounter during audit Inherent or control risk which is all related to the internal control of the firm management mores corporate governance. Detection risk that is the risk that the procedures are done by the auditor in conducting audit may not give him the opportunity to identify the risk during the audit, but in sum, tallit may turn out to be a material misstatement.