chap 8 estimate mistatement and compare with preliminary judgement

Question 1

Auditors document all misstatements found for each audit segment. These may be what 2 categories?

Answer 1

known misstatements or likely misstatements

Question 2

what are two types of likely misstatements

Answer 2

1. Differences between management’s and the auditor’s judgment about estimates of account balances 2. Projections of misstatements based on the auditor’s tests of a sample

Question 3

Known misstatements are those that the auditor can what?

Answer 3

can determine the amount of misstatement in the account.

Question 4

the last 3 steps in applying materiality result from what?

Answer 4

performing audit tests