Each accounting measurement model creates the same type of misstatement risk for an auditor.

Question

Quizplus · Accepted Answer

Different accounting measurement models create different types of misstatement risks for auditors. For example, the fair value measurement model creates a higher risk of subjective judgment and estimation error, while the historical cost measurement model creates a higher risk of understatement or overstatement of values.

Each Accounting Measurement Model Creates the Same Type of Misstatement