In evaluating whether there is a sufficiently low probability of material misstatement in the financial statements,the auditors accumulate:
A)Factual misstatements in the financial statements.
B)Judgmental misstatements in the financial statements.
C)Factual and judgmental misstatements in the financial statements.
D)Factual,judgmental and projected misstatements and an allowance for undetected misstatements in the financial statements.

Question

Quizplus · Accepted Answer

In evaluating the probability of material misstatement in the financial statements, the auditors accumulate factual and judgmental misstatements as well as projected misstatements and an allowance for undetected misstatements. This approach is consistent with the auditing standards set forth by the PCAOB and provides a comprehensive assessment of the risk of material misstatement.

In Evaluating Whether There Is a Sufficiently Low Probability of Material