An account is at a higher risk of misstatement when it requires
A) complex calculations.
B) estimation.
C) both a and b
D) simple valuation techniques.

Question

Quizplus · Accepted Answer

Complex calculations and estimation both require a higher level of judgment and subjectivity, which increases the risk of misstatement. Simple valuation techniques are less likely to result in errors or misstatements.

An Account Is at a Higher Risk of Misstatement When