Distinguish between factual, judgmental and projected misstatements

There are three types of misstatements:

•  Factual Misstatements. These are misstatements about which there is no doubt. For example, an auditor may test a sales invoice and determine that the prices applied to the products ordered are incorrect. Once the products are correctly priced, the amount of misstatement is known. In such cases, the auditor knows the exact amount of the misstatement 
• Judgmental Misstatements. These are misstatements that arise from the judgments of management concerning accounting estimates that the auditor considers unreasonable or the selection or application of accounting policies that the auditor considers inappropriate.
•  Projected Misstatements. These are the auditor's best estimates of misstatements in populations, involving the projection of misstatements identified in an audit sample to the entire population from which the sample was drawn