Which of the Following Is a Factual Misstatement

question 54

Multiple Choice

Which of the following is a factual misstatement?

• A)A management estimate that is outside the range of reasonable outcomes determined by the auditor.
• B)A fixed asset being recorded at the incorrect cost.
• C)A projected misstatement resulting from errors found during sampling.
• D)Difference in judgment between the auditor and management.

---

Definitions:

Securities

Tradable financial assets such as stocks, bonds, and options, valued for investment and trading purposes.

Registrant

A business entity or individual that registers or files information with a regulatory authority.

Private Placement

The sale of securities to a relatively small number of select investors as a way of raising capital, bypassing the public markets.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or the rights to ownership (derivatives) that can be bought and sold.