Communication of Uncorrected Misstatements

Question 1

What does ISA 450 require?

Answer 1

Auditor to communicate uncorrected misstatements and their effect to those charged with governance, with material uncorrected misstatements being identified individually

Question 2

What must the auditor request? (uncorrected)

Answer 2

Uncorrected misstatements to be corrected

Question 3

What shall auditor communicate?

Answer 3

The effect of uncorrected misstatements relating to prior periods

Question 4

What shall auditor request (written misstatements immaterial FS)

Answer 4

Written representation from management and those charged with governance to whether they believe effects of uncorrected misstatements are immaterial to FSs as a whole

Question 5

How should a summary of items be included?

Answer 5

In or attached to the representation

Question 6

ISA 450 requires auditor to document (amount misstatements)

Answer 6

The amount below which misstatements would be regarded as clearly trivial

Question 7

ISA 450 requires auditor to document (misstatements accumulated)

Answer 7

All misstatements accumulated during the audit and whether they have been corrected

Question 8

ISA 450 requires auditor to document (conclusion misstatements)

Answer 8

Auditor;s conclusion as to whether incorrected misstatements are material and the basis for that conclusion