Acc 450 specific misstatement in one of a client's 2,000 accounts receivable is referred to as a(n)?

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03-08-2022
Business

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Acc 450 specific misstatement in one of a client's 2,000 accounts receivable is referred to as a(n)?

Sagot :

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smecloudbird17 smecloudbird17 · Answer 1 · 2022-08-14T22:59:51-04:00

Specific misstatement in one of a client's 2,000 accounts receivable is referred to as a factual misstatement.

Factual misstatement refers to a misstatement found by the auditor that is due to incorrect pricing on a sales invoice in accounts receivable. When there is no doubt that an item on a financial document is incorrect then it is a factual misstatement.

Here an auditor will know that a misstatement is factual because they will check your records to find the correct item instead. For instance, listing an inventory purchase as a profit instead of a loss.

Hence, the answer is given and explained above.

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Acc 450 specific misstatement in one of a client's 2,000 accounts receivable is referred to as a(n)?

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