Understatement of revenue is regarded as a greater problem by auditors than overstatement of revenue.

Name: Understatement of revenue is regarded as a greater problem by auditors than overstatement of revenue.
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Overstatement of revenue is generally regarded as a greater problem by auditors because it can mislead stakeholders about the financial health of a company, potentially leading to inflated stock prices, unwarranted bonuses, and can mask underlying financial issues.

Understatement of Revenue Is Regarded as a Greater Problem by Auditors