CAF-8 · Chapter 15 · Question 6 of 10
An auditor uses statistical sampling to test inventory and projects that the total population misstatement is Rs. 4 million. Which category of misstatement does this represent?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Projected misstatement
Explanation
Misstatements are categorized into three types: Factual (no doubt it's an error), Judgmental (differences in accounting estimates or policies), and Projected (the auditor's best estimate of total errors in a population extrapolated from a sample).
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