Judgmental misstatements can arise from
A) the auditor conducting substantive tests inappropriate to the account being tested.
B) differences in the interpretation or application of accounting policies.
C) selecting a sample that is not representative of the population.
D) none of the above

Question

Quizplus · Accepted Answer

Judgmental misstatements can arise from differences in the interpretation or application of accounting policies, such as disagreements between the auditor and management over the appropriate treatment of a particular transaction or account. Conducting inappropriate substantive tests and selecting a non-representative sample may result in other types of misstatements, but not necessarily judgmental misstatements.

Judgmental Misstatements Can Arise from