If a reasonable person could not reach such a conclusion regarding a particular misstatement, that misstatement is more than inconsequential.Ĭomplete removal of an amount due, (usually referring to a tax ABATEMENT a penalty abatement or an INTEREST abatement within a governing agency).Īn approach to product costing that assigns a representative portion of all types of manufacturing costs-direct materials, direct labor, variable factory overhead, and fixed factory overhead-to individual products.

If a reasonable person would conclude after considering the possibility of further undetected misstatements that the misstatement either individually or when aggregated with other misstatements would clearly be immaterial to the FINANCIAL STATEMENTS.