Misstatements in the financial statements can result from:
A) Errors
B) Fraud
C) Illegal acts improperly recorded
D) All of the above

Question

Quizplus · Accepted Answer

Misstatements in the financial statements can result from errors, such as accidental mistakes or omissions in recording transactions, as well as fraud, which involves intentional misrepresentation of financial statements. Misstatements can also result from illegal acts that are improperly recorded or not recorded at all. Therefore, all of the options (A, B, and C) can result in misstatements in the financial statements.

Misstatements in the Financial Statements Can Result From