Home  Journals  International Accounting  22(364) - 2015 June

The content of the misstatement in financial reporting category in the accounting and auditing interpretation

Available online: 19 July 2015

Subject Heading: AUDIT ACTIVITY

JEL Classification: 

Pages: 56-66

Subject Misstatements in financial reporting of economic entities mislead the economic agents interested in their operations and considerably increase the risk of poor judgment of the users of financial reporting about economic resources and needs of the economic entities. This entails poor investment decisions. Therefore, the misstatements in financial reporting concept is essential to determine the quality of accounting and financial information and the efficiency of the audit institution functioning.
     Objectives The research aims at disclosing the concept of misstatements in financial reporting in the context of its quality from the auditing and accounting viewpoint.
     Methods In the study, I employed formal and logical methods and techniques of knowledge like analysis and synthesis, induction and deduction, comparison, and analogy.
     Results The article presents the premises of the concept of misstatements in financial reporting. The content of this category within the accounting interpretation is defined in the context of the subject matter of accounting, as well as the concept of usefulness and criteria of reliability and fair presentation of financial information.
     Conclusions Under accounting interpretation, the content of the category of misstatements in financial reporting is defined within the concept of usefulness of financial information, the subject matter of accounting and the balance of reliability and fair presentation of accounting and financial information criteria. As for the auditing interpretation, the content of the category of misstatements in financial reporting manifests itself in practical, theoretical and methodological aspects.

Keywords: misstatement, accounting, financial reporting, relevance, reliability

References:

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