An approach that quantifies the total likely misstatement as of the current year-end based on the effects of reflecting all misstatements existing in the balance sheet at the end of the current year, irrespective of whether the misstatements occurred in the current or previous years 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 iron curtain approach quantifies the total likely misstatement by considering all misstatements existing in the balance sheet at the end of the current year, regardless of when they occurred.

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