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studyCPA2012
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| Posted: 21 Aug 2012 at 00:09 | IP Logged
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Does anybody help me to resolve this kind of question: How the misstatement effect income, increase, decrease or no effect? Thanks a lot!
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faten
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| Posted: 21 Aug 2012 at 01:21 | IP Logged
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It depends on the type of the misstatement. If some sales for examples
were entered twice because of a computer error, this will cause
revenue overstatement and thus showing an increase in income. On
the other hand, if some sales were not entered, this misstatement will
cause understatement in revenue and thus showing a decrease in
income.
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studyCPA2012
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| Posted: 21 Aug 2012 at 10:45 | IP Logged
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Thank you for your reply! I believe there are lot of factors effect income, or no effect to the income. What kinds examples no effect to the income?
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Topic: Misstatement effect income
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