Management estimates the company's allowance for doubtful accounts as $200,000, and the auditors develop an estimate that suggests that the amount should be between $230,000 and $250,000. The factual misstatement in this situation is:a. $0. b. $30,000. c. $50,000. d. $40,000.

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Business

Isla Carrillo

2 September, 20:25

Management estimates the company's allowance for doubtful accounts as $200,000, and the auditors develop an estimate that suggests that the amount should be between $230,000 and $250,000. The factual misstatement in this situation is:a. $0. b. $30,000. c. $50,000. d. $40,000.

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Yareli Hale · Answer 1

Opton a $0

Explanation:

Factual misstatements There is no doubt of a mistake. There is an instance necessary to dsiclosure the correct information which is missing.

This is not the case as the company has a doubful accounts and disclosure in his statements.

Therefore, this is not a factual misstatement. The company has used an inferior or different method than the auditor.