An approach that quantifies the total likely misstatement as of the current year-end based on the effects of reflecting misstatements during the current year (and not considering any unadjusted previous year misstatements) is referred to as the:
A) Evaluation materiality approach.
B) Iron curtain approach.
C) Projected misstatement approach.
D) Rollover approach.

Question

Quizplus · Accepted Answer

The rollover approach quantifies the total likely misstatement by considering only the effects of misstatements that occurred during the current year, without taking into account any unadjusted misstatements from previous years.

An Approach That Quantifies the Total Likely Misstatement as of the Current