77 paragraphs found
Pervasive – A term used, in the context of misstatements, to describe the effects on the financial report of misstatements or the possible effects on the financial report of misstatements, if any, that are undetected due to an inability to obtain …
Modified opinion – A qualified opinion, an adverse opinion or a disclaimer of opinion on the financial report. …
ASA 450 defines a misstatement as a difference between the reported amount, classification, presentation, or disclosure of a financial statement item and the amount, classification, presentation, or disclosure that is required for the item to be in …
In relation to the appropriateness of the accounting policies management has selected, material misstatements of the financial report may arise, for example, when: The selected accounting policies are not consistent with the applicable financial reporting …
Financial reporting frameworks often contain requirements for the accounting for, and disclosure of, changes in accounting policies. Where the entity has changed its selection of significant accounting policies, a material misstatement of the financial …
In relation to the application of the selected accounting policies, material misstatements of the financial report may arise: When management has not applied the selected accounting policies consistently with the financial reporting framework, including …
In relation to the appropriateness or adequacy of disclosures in the financial report, material misstatements of the financial report may arise when: The financial report does not include all of the disclosures required by the applicable financial …
The auditor’s inability to obtain sufficient appropriate audit evidence (also referred to as a limitation on the scope of the audit) may arise from: Circumstances beyond the control of the entity; Circumstances relating to the nature or timing of the …
An inability to perform a specific procedure does not constitute a limitation on the scope of the audit if the auditor is able to obtain sufficient appropriate audit evidence by performing alternative procedures. If this is not possible, the requirements …
Examples of circumstances beyond the control of the entity include when: The entity’s accounting records have been destroyed. The accounting records of a significant component have been seized indefinitely by governmental …