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Should companies focus on economic loss or financial statement misrepresentation?

April 26, 2017companies Economic financial statement focus loss misrepresentation

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Should companies focus on economic loss or financial statement misrepresentation?

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The main focus should be on economic loss. Question #30 addresses financial statement presentation risk from a controls and management perspective. Question # 43 addresses financial presentation risk from a legal perspective. To the extent that economic loss could be caused by presentation errors, economic loss should remain the focus.