Evaluation of Misstatements

Question 1

Factual

Answer 1

These are misstatements about which there is no doubt

Question 2

Judgmental

Answer 2

misstatements that arise when mgmt applies accounting estimates or selects and applies accounting policies that the practitioner consiiders to be unreasonable or inappropriate.

Question 3

Projected

Answer 3

misstatements that are derived from the practitioners best esitmate of a misstatement in a population.