An approach that quantifies the total of uncorrected misstatement as of the current year-end based on the effects of reflecting misstatements during the current year (and not considering any unadjusted previous year misstatements)is referred to as the:
A)Evaluation materiality approach.
B)Iron curtain approach.
C)Projected misstatement approach.
D)Rollover approach.

Question

Quizplus · Accepted Answer

The rollover approach focuses on the quantification of misstatements affecting the current year's income statement, without adjusting for misstatements from previous years that were carried forward. It emphasizes the impact of misstatements on the current period's financial results.

An Approach That Quantifies the Total of Uncorrected Misstatement as of the Current