Judgmental misstatement

Financial reporting - audit.

In financial reporting, misstatements are differences between amounts reported - or other disclosures - in financial statements, and the amounts or disclosures required by relevant accounting standards.

Judgmental misstatements in audits arise from differences in the judgments of the reporting entity and the auditors.

Examples include material differences in depreciation rates, outside of the bounds of reasonableness.

See also

• Accounting standards
• Audit
• Depreciation
• Disclosure
• Factual misstatement
• Financial reporting
• Material
• Misrepresentation
• Misstatement
• Negligent misstatement
• Qualified audit report
• Unqualified audit report