Why this is mistaken
Rollover answers the current income-statement question. It can miss a large accumulated balance-sheet error. Covered registrants compute both views and then perform the separate materiality analysis; they do not elect the smaller answer.
Where to watch
When this mistake may appear
- A repeated error is small in the current period.
Check your work
Your work may contain this mistake if:
- Omits the accumulated balance under the iron-curtain view.