ACCA AA · Chapter 13 · Question 2 of 12
Under ISA 450, what should the auditor do with misstatements identified during the audit, other than those that are clearly trivial?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Accumulate them and request management to correct them
Explanation
ISA 450 requires the auditor to accumulate all misstatements other than those that are clearly trivial and to communicate them on a timely basis to management, requesting correction. Individually small misstatements may be material in aggregate. The auditor does not make adjustments to the client's records, as that would be a management responsibility.
More Misstatements and the auditor's report MCQs
- Q4Under ISA 705, what type of opinion is required when the auditor concludes that misstatements are both material and pervasive?
- Q5The auditor is unable to attend the inventory count and cannot obtain sufficient appropriate evidence about inventory by alternative…
- Q6Under ISA 705, which of the following would NOT make the effects of a misstatement pervasive?
- Q7Which situation would lead the auditor to disclaim an opinion under ISA 705?
- Q8Which of the following best describes when an Emphasis of Matter paragraph is used under ISA 706?