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10 Jul 2019
An auditor finds three misstatements.For each misstatement,categorize it as factual, judgmental, projected, error, orfraudulent.The misstatements may or may not belong to more than onecategory. Include only the categories supported by the descriptionof the misstatement. Misstatement 1:An auditor samples accountsreceivable and finds a total of $3,000 overstatements in thesample. Based on the sample in misstatement 1, the auditor believesthat accounts receivable is overstated by a total of $30,000. Aclient records bad debt at 2% of sales, the same as last year. Theauditor thinks it should be recorded at 4% because of changedeconomic conditions.
An auditor finds three misstatements.For each misstatement,categorize it as factual, judgmental, projected, error, orfraudulent.The misstatements may or may not belong to more than onecategory. Include only the categories supported by the descriptionof the misstatement. Misstatement 1:An auditor samples accountsreceivable and finds a total of $3,000 overstatements in thesample. Based on the sample in misstatement 1, the auditor believesthat accounts receivable is overstated by a total of $30,000. Aclient records bad debt at 2% of sales, the same as last year. Theauditor thinks it should be recorded at 4% because of changedeconomic conditions.
Beverley SmithLv2
13 Jul 2019
