Total estimated misstatements include known misstatements and projected misstatements plus a sampling error.

Question

Quizplus · Accepted Answer

Total estimated misstatements include both known misstatements (those found and specifically identified by the auditor) and projected misstatements (extrapolated from audit findings to the entire population being audited), as well as a sampling error (the risk of assuming the sample is representative of the entire population).

Total Estimated Misstatements Include Known Misstatements and Projected Misstatements Plus