May 2024 | APT Global Firms

29 May 24

Evaluation of Misstatement in Audit Engagement (Part v)

Specific Requirements and Application of ISA 450 The term ‘Application’ is an important step of applying the specific requirement. This can be simplified as a decision making process. The auditors shall make the initial assessment using the knowledge is gathered including the preliminary understanding the internal control. If the aggregate…

19 May 24

Evaluation of Misstatement in Audit Engagement (Part iv)

Evaluating the Effect of Uncorrected Misstatements considers materiality concepts already outlined previously. In this context, we can infer that misstatements are considered material if they would affect decisions made by users on the basis of the financial statements. This might include a decision not to invest in the entity, to…

11 May 24

Evaluation of Misstatement in Audit Engagement (Part iii)

Correction of Misstatements The importance of correcting misstatements is another area where the literature is silent. The auditing literature implies that auditors should correct all misstatements. More specifically, SAS (AU 326.20) and AAS 13 (AUs 322.20) require the auditor to request management to adjust the financial statements for all identified…

07 May 24

Evaluation of Misstatement in Audit Engagement (Part ii)

Categories of Factual Misstatements It can be assumed that factual misstatements are straightforward to detect and evaluate, and that auditors are likely to evaluate them consistently. This is because the distinction between the audited information and the auditors’ understanding, which is needed to evaluate misstatements, only exists for objective data,…

05 May 24

Evaluation of Misstatement in Audit Engagement (Part i)

Introduction: Definitions and Objectives i. Objectives and Definitions Inherent misstatement is defined as a misstatement of an amount or disclosure that is not in accordance with the applicable financial reporting framework, created by the difference between the amount, classification, presentation, or disclosure of that amount or disclosure in the financial…

Month: May 2024

Evaluation of Misstatement in Audit Engagement (Part v)

Evaluation of Misstatement in Audit Engagement (Part iv)

Evaluation of Misstatement in Audit Engagement (Part iii)

Evaluation of Misstatement in Audit Engagement (Part ii)

Evaluation of Misstatement in Audit Engagement (Part i)

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