A misstatement is defined as variances that only occur in the interin fruncial statements. a difference between what is reported in the client prepared final clail statements with what is required for the itera to be presented tarly in accordince whis the applicable frunclal reporting framemork. the auditor incorrectly billing the client for work that was not performed. there being no difference between what is reported in the client prepared fassial traticats and in at is recaired for the item to be presented lairly in accordance with the applicable fruncial reporting framewori.