If two different accountants were to estimate the percentage of customers who will NOT pay their accounts (bad debts), they could arrive at different estimates. These differing estimates would affect the financial statements. Such differences in assessing estimates are due to

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The differing estimates are due to disagreements in judgment between the two accountants. This is a common issue that can arise when making estimates, and it can result in differences in the financial statements. Fraudulent financial reporting, errors in accounts and ledgers, and lack of internal controls may also affect the financial statements, but they are not directly related to disagreements in judgment between accountants.

If Two Different Accountants Were to Estimate the Percentage of Customers