Uncorrected Misstatements Flashcards
What is a misstatement
Difference between the reported of an FS and what is required for the item to be in accordance with applicable financial reporting framework
What can be in a misstatement?
Amount
Classification
Presentation
Disclosure
How can misstatements arise?
From error or fraud
What is an uncorrected misstatement?
A misstatement that auditor has accumulated during th audit and that has not been corrected
What happens during the audit?
A schedule will have been maintained of misstatements identified that have not been corrected by the client
What might some misstatements be?
Individually immaterial but schedule must be reviewed at this stage before the audit opinion is finalised
Why must effect of uncorrected misstatements be considered in aggregate?
As their combined effect may be material and this could affect the audit opinion
