To obtain the projected misstatements for the account balance or class of transactions,auditors
A)divide the known misstatement by the likely misstatement
B)subtract the likely misstatement from the known misstatement
C)add the known misstatement to the likely misstatement
D)subtract the known misstatement from the likely misstatement

Question

Quizplus · Accepted Answer

Auditors add the known misstatement to the likely misstatement to obtain the projected misstatements for the account balance or class of transactions. This approach helps in estimating the total potential misstatement in financial statements.

To Obtain the Projected Misstatements for the Account Balance or Class