misstatement

Misstatement is an assertion that is incorrect or misleading, arising from error, negligence, or deliberate deceit. It can involve facts, figures, or the interpretation of information and may occur in many domains, including finance, law, research, and journalism. A misstatement may be unintentional or intentional, and its significance depends on context and consequences.

In accounting and auditing, a misstatement is information in financial statements that misleads about an entity’s financial position, results, or cash flows. Material misstatements are those likely to influence users’ decisions. They can stem from errors or fraud. When material misstatements are identified, management may restate the financial statements, and auditors may issue qualified or adverse opinions if the statements remain misstated.

In law, misstatement or misrepresentation is a false statement of material fact made to induce another to enter a contract. Remedies include rescission and damages; liability varies by extent of fault. Distinctions are drawn among innocent, negligent, and fraudulent misrepresentation, with increasingly stringent remedies and penalties.

In research, statistics, and data reporting, misstatement refers to inaccuracies in data collection, analysis, or presentation. This can arise from simple errors, faulty instrumentation, or intentional fabrication. Safeguards include validation, peer review, preregistration, and replication.

In journalism and public communications, misstatements are incorrect facts reported to the public and corrected through clarifications or retractions.