Which of the following is a factual misstatement?
A)A management estimate that is outside the range of reasonable outcomes determined by the auditor.
B)A fixed asset being recorded at the incorrect cost.
C)A projected misstatement resulting from errors found during sampling.
D)Difference in judgment between the auditor and management.

Question

Quizplus · Accepted Answer

A factual misstatement refers to an inaccuracy that is objectively verifiable. Option B, a fixed asset being recorded at the incorrect cost, is a clear example of a factual misstatement because it involves an error in recording an asset's value, which can be objectively verified against purchase documents or valuation reports.

Which of the Following Is a Factual Misstatement