An immaterial misstatement occurs when the client departs from the applicable financial reporting framework.

Question

Quizplus · Accepted Answer

An immaterial misstatement refers to an error or omission in financial statements that is not significant enough to affect the decision-making of users. Departing from the applicable financial reporting framework can lead to misstatements, but not all such departures result in immaterial misstatements.

An Immaterial Misstatement Occurs When the Client Departs from the Applicable