Each of the following is a type of known misstatement, except:
A)an inaccuracy in processing data.
B)the misapplication of accounting principles.
C)differences between management and the auditor's judgment regarding estimates.
D)a difference between the classification of a reported financial statement element and the classification according to generally accepted accounting principles.

Question

Quizplus · Accepted Answer

Misstatements in financial statements can arise from inaccuracies in processing data, misapplication of accounting principles, and incorrect classification of financial statement elements. However, differences between management and the auditor's judgment regarding estimates are not considered a type of misstatement but rather a difference in opinion or judgment. Misstatements typically involve errors or fraud in the financial records, not subjective differences in estimates.

Each of the Following Is a Type of Known Misstatement