Most audit firms use a schedule to accumulate the known and projected misstatements and the carryover effects of prior-year uncorrected misstatements.

Question

Quizplus · Accepted Answer

This statement is true. Audit firms commonly use a schedule to keep track of all known and projected misstatements, as well as any carryover effects from previous years' uncorrected misstatements. This helps ensure that all necessary adjustments are made in the current year's financial statements.

Most Audit Firms Use a Schedule to Accumulate the Known