Specific misstatement in one of a client's 2,000 accounts receivable is referred to as a(n):
A) Extrapolation difference.
B) Known misstatement.
C) Likely misstatement.
D) Projected misstatement.

Question

Quizplus · Accepted Answer

A specific misstatement in one of a client's accounts receivable is referred to as a known misstatement. A known misstatement is a specific misstatement that is identified during the audit and is either corrected by the client or adjusted by the auditor in the financial statements. The other answer choices are not relevant to the specific misstatement in one of the client's 2,000 accounts receivable.

Specific Misstatement in One of a Client's 2,000 Accounts Receivable