A material misstatement is one that would affect a user's decision making.

Question

Quizplus · Accepted Answer

A material misstatement is a factual error that could potentially influence a user's decision-making process. It refers to something that is significant enough to change the perception of the financial statements, and therefore, could result in a different decision being made. Materiality thresholds may be used to determine whether or not a misstatement is considered material.

A Material Misstatement Is One That Would Affect a User's