Question
Evaluation of Misstatements Identified during the audit (CAS 540) Example: Overall materiality=40,000 Known(or Factual) misstatement = 25,000 projected(or extraploated) misstatements=25,000 estimated(or judgement) misstatement=15,000 The above
Evaluation of Misstatements Identified during the audit (CAS 540)
Example:
Overall materiality=40,000
Known(or Factual) misstatement = 25,000
projected(or extraploated) misstatements=25,000
estimated(or judgement) misstatement=15,000
The above is a suggested method of accumulating misstatements
Based on the misstatements above alone what is the appropriate audit report?
What are the auditor's opinion?
change materality?
change engagement type?
perform more audit procedures?
adjust balance?
resign?
modify the report?
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Auditing and Assurance services an integrated approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
16th edition
978-0134075754, 134075757, 134065824, 978-0134065823
