CA Inter P5 · Chapter 7 · Question 10 of 12
Under SA 450, the auditor shall accumulate misstatements identified during the audit, other than those that are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Clearly trivial
Explanation
SA 450 requires accumulation of all misstatements identified during the audit other than those that are clearly trivial. Clearly trivial is a much smaller threshold than performance materiality. Judgmental and projected misstatements must also be accumulated and evaluated.
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