AS 2201.29 instructs auditors to consider this list of qualitative and quantitative risk factors when

considering accounts listed on financial statements. Provide an example of what auditors should

consider when assessing these factors.

a. Size and composition of the account

-

b. Susceptibility to misstatement due to errors or fraud

c. Volume of activity, complexity and homogeneity of the individual transactions processed through

the account or reflected in the disclosure

d. Nature of the account or disclosure

e. Accounting and reporting complexities associated with the account or disclosure

F. Exposure to losses in the account

g. Possibility of significant contingent liabilities arising from the activities reflected in the account or

disclosure

h. Existence of related-party transactions in the account

I. Changes from the prior period in account or disclosure characteristics