Final answer:
Judgmental misstatements in accounting context refer to errors arising from misinterpretation or misapplication of principles, while factual misstatements are due to numerical errors. A flaw in the accounting system could result in a systematic error or a judgmental misstatement, depending on the nature of the flaw. A mistake from a routine calculation typically represents a factual misstatement that can be corrected with accurate recalculations.
Step-by-step explanation:
When determining if arises from a flaw in the accounting system or arises from a routine calculation are considered judgemental misstatements, it's important to understand the nature and context of these statements. In accounting and auditing, a judgemental misstatement can occur due to a misinterpretation or misapplication of accounting principles, whereas a factual misstatement derives from numerical miscalculations or an incorrect recording of transaction data.
1) If a statement arises from a flaw in the accounting system, it could be either a systematic error or a judgemental misstatement. The distinction often depends on whether the flaw is due to an oversight in judgment or a consistent procedural error. Systematic errors, such as those caused by incorrect calibration of measuring instruments or flaws in the accounting system, often lead to consistent discrepancies in the reported figures.
2) A statement that arises from a routine calculation might be considered a factual misstatement, especially if it's a straightforward mathematical error that can be verified through re-calculation. For example, if an accountant incorrectly adds numbers due to forgetfulness of proper mathematical rules or lack of understanding, this can lead to a misstatement.
It is essential for accounting professionals to be vigilant about potential errors by checking coherence with known facts or data, which can indicate whether other judgments might also be incorrect. This diligence helps identify potential systematic errors and irregularities in measurements. Additionally, experts in the field often have an intuition for when something might be amiss, prompting further review.