What is Summary of uncorrected misstatements?
In short
The auditor accumulates misstatements found during the audit, other than clearly trivial ones, asks management to correct them, and evaluates whether those left uncorrected are material, alone or together.
Key takeaways
- A summary of the uncorrected misstatements is included in or attached to the management representation letter.
- Uncorrected misstatements are communicated to those charged with governance.
- Prior-period uncorrected misstatements are considered when evaluating the current period.
Where it's tested
AUD: Written Representations & Completing the Audit — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
During the completion phase, the auditor accumulates uncorrected misstatements primarily to: