Chapter 8, Problem 46RSCQ

To determine

Introduction:When an error is occurred in transaction area or account section that error is called misstatement.

Requirement 1

Define the misstatement.

To determine

Introduction:The factual misstatement is that type of error which is recognized by the auditor. There is no doubt in this.

Requirement 2

Define the factual misstatement.

To determine

Introduction:When the misstatement is depending on the total samples chosen by the auditor that type of misstatement is called projected misstatement.

Requirement 3

Define the projected misstatement.

To determine

Introduction:When the limit of the misstatement is decided by the auditor to control the errors that type of misstatement is tolerable misstatement.

Requirement 4

Define the tolerable misstatement.

To determine

Introduction:The expected misstatement is decided by the auditor to compare from the previous results and projected on the total population.

Requirement 5

Define the expected misstatement.