What is the expected result of difference estimation?

The expected result of difference estimation is primarily to calculate the necessary adjustments required for the population. This approach is used in auditing to estimate the overall misstatement in a financial population based on observed differences in a sample. By analyzing sample data, auditors can extrapolate findings to the entire population, determining the total misstatement and consequently the adjustments needed to correct any inaccuracies. This method effectively helps auditors assess the materiality of identified errors and informs decisions on necessary adjustments to the financial statements.

In contrast, other options focus on different aspects of the audit process. Determining the total value of overstatements would not capture the complete picture, as it does not necessarily lead to adjustments but merely quantifies exposure. Deriving average errors might provide some insight into the misstatements, yet it lacks the comprehensive context needed to form action-oriented conclusions about adjustments. Identifying all possible deviations in a sample offers valuable information, but it does not specifically address the end goal of calculating adjustments for the population. Each of these activities contributes to the audit process, yet they do not fulfill the unique purpose of difference estimation, which is centered on effectively guiding corrective actions for the population based on sample findings.