Misstatements are defined as the difference between ________ and the nearest point of the reasonable range.
A)management's point estimate
B)the auditor's point estimate
C)estimation uncertainty
D)the outcome of an accounting estimate

Question

Quizplus · Accepted Answer

Misstatements are defined as the difference between management's point estimate and the nearest point of the reasonable range. The auditor's point estimate is not used to define misstatements. Estimation uncertainty refers to the lack of precision and reliability in estimating amounts and involves a range of possible outcomes. The outcome of an accounting estimate reflects the final amount determined through the use of the accounting estimate.

Misstatements Are Defined as the Difference Between ________ and the Nearest