71 paragraphs found
Misstatements by nature or circumstances, accumulated as described in paragraphs A3‑A4 , cannot be added together as is possible in the case of misstatements of amounts. Nevertheless, the auditor is required by paragraph 11 of this Auditing Standard to …
To assist the auditor in evaluating the effect of misstatements accumulated during the audit and in communicating misstatements to management and those charged with governance, it may be useful to distinguish between factual misstatements, judgemental …
If the aggregate of misstatements accumulated during the audit approaches materiality determined in accordance with ASA 320 , there may be a greater than acceptably low level of risk that possible undetected misstatements, when taken with the aggregate of …
The auditor may request management to examine a class of transactions, account balances or disclosures in order for management to understand the cause of a misstatement identified by the auditor, perform procedures to determine the amount of the actual …
In some jurisdictions, law or regulation may restrict the auditor’s communication of certain misstatements to management, or others, within the entity. Law or regulation may specifically prohibit a communication, or other action, that might prejudice an …
The correction by management of all misstatements, including those communicated by the auditor, enables management to maintain accurate accounting books and records and reduces the risks of material misstatement of future financial reports because of the …
ASA 700 requires the auditor to evaluate whether the financial report is prepared and presented, in all material respects, in accordance with the requirements of the applicable financial reporting framework. This evaluation includes consideration of the …
ASA 320 explains that, as the audit progresses, materiality for the financial report as a whole (and, if applicable, the materiality level or levels for particular classes of transactions, account balances or disclosures) is revised in the event of the …
Each individual misstatement of an amount is considered to evaluate its effect on the relevant classes of transactions, account balances or disclosures, including whether the materiality level for that particular class of transactions, account balance or …
In addition, each individual misstatement of a qualitative disclosure is considered to evaluate its effect on the relevant disclosure(s), as well as its overall effect on the financial report as a whole. The determination of whether a misstatement(s) in …