Evaluation Of Misstatement

Question 0

Factual misstatement

Answer 0

Inaccuracy in accounting processing data

Misapplication of ACC principles

Difference between the classification of a reported financial statement element and the classification according the generally accepted accounting principles

Question 1

Judgmental misstatements

Answer 1

Unreasonable accounting estimates and selection of inappropriate accounting policies

Difference between management and auditors judgment regarding accounting estimates

Question 2

Required to document

Answer 2

Identify mm by management

Basis for the determination of material levels used

Conclusions as to whether any mm that management chose not to correct are material

Question 3

Auditor should request management to correct nontrivial identified factual misstatements

Answer 3

True