Material Misstatement of What? A Comment on Smieliauskas et al., A Proposal to Replace 'True and Fair View' with 'Acceptable Risk of Material Misstatement'

8 Pages Posted: 19 Dec 2010

See all articles by David J. A. Alexander

David J. A. Alexander

University of Birmingham Business School

Abstract

This comment explores theoretical and practical aspects of the Smieliauskas et al. (2008), A Proposal to 'Replace True and Fair View' with 'Acceptable Risk of Material Misstatement', and develops the ideas outlined there. It is argued that these proposals are helpful, but theoretically incomplete. Theoretical developments relating to accounting aspects are offered, and proposed for others to take further. The pragmatic implications suggest difficulties in the operationalization of the ideas of the original paper in a world of multiple and inconsistent user needs.

Keywords: Material misstatement, Risk reporting, True and fair view

Suggested Citation

Alexander, David J. A., Material Misstatement of What? A Comment on Smieliauskas et al., A Proposal to Replace 'True and Fair View' with 'Acceptable Risk of Material Misstatement'. Abacus, Vol. 46, No. 4, pp. 447-454, 2010, Available at SSRN: https://ssrn.com/abstract=1726919 or http://dx.doi.org/10.1111/j.1467-6281.2010.00327.x

David J. A. Alexander (Contact Author)

University of Birmingham Business School ( email )

Edgbaston Park Road
Birmingham, B15 2TY
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
1,200
PlumX Metrics