Which of the following statements best describes a misstatement?
A)a misstatement is either an error (an unintentional mistake)or fraud (an intentional mistake)in the financial statements
B)some management misstatements are material and some management misstatements are too small to be material
C)when a statement is material,an outsider would change his decision regarding the audit if he knew about the misstatement
D)some misstatements are neither material nor immaterial

Question

Quizplus · Accepted Answer

A misstatement refers to inaccuracies in financial statements, which can occur due to errors (unintentional) or fraud (intentional).

Which of the Following Statements Best Describes a Misstatement