AU-C Section 450 Evaluation of Misstatements Identiﬁed During the Audit describes misstatements as _______.
A)Factual misstatements
B)Judgmental misstatements
C)Projected misstatements
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

AU-C Section 450 Evaluation of Misstatements Identiﬁed During the Audit describes misstatements as both factual misstatements (arising from errors in transactions, records or other sources) and judgmental misstatements (arising from management's application of accounting policies). The section also discusses the concept of projected misstatements (results of extrapolating misstatements identified in a sample to the entire population) and how they should be evaluated during the audit. Therefore, all answer choices are correct.