Which method focuses on the materiality of current year misstatements and the reversing effect of prior-year misstatements on the income statement?
A)Rollover method.
B)Iron curtain method.
C)Percentage approach.
D)Judgmental method.

Question

Quizplus · Accepted Answer

The rollover method focuses on the materiality of current year misstatements and the reversing effect of prior-year misstatements on the income statement. It takes into account the effect of prior-year misstatements that have not been corrected and considers their impact on the current year's financial statements. The other methods listed do not specifically address these factors.

Which Method Focuses on the Materiality of Current Year Misstatements