Material Misstatement
/ˌmætɪriəl ˌmɪsˈsteɪtmənt/
Definitions
- (n.) A false or misleading statement or omission of fact that is significant enough to influence the decision of a reasonable user, especially in financial or legal documents.
The auditor found a material misstatement in the company's financial report that required correction.
Forms
- material misstatement
- material misstatements
Related terms
See also
Commentary
Materiality depends on the context and the perspective of the specific decision-maker; drafters should tailor clarity based on the document's relevance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.