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Finalizing questions (Misstatements can be qualitatively material (Usually…
Finalizing questions
Misstatements can be qualitatively material
Usually non-compliance with accounting standards
Will affect the decisions of stakeholders
Disclosure
Items that may affect going concern
Judgemental uncorrected misstatement
Qualitatively material
Affect decisions of users
Pervasive if understanding of financials
Hence, adverse auditnopinion
Basis for adverse opinon
Reports by management
If in contradiction with info
Material inconsistency
If not fixed
Material inconsistency in other info paragraph
May also ammend at request
Isa 720 A39
Factually uncorrected misstatements
Think of accounting treatments
Then say quantitatively or qualitatively material
Pervasive?
Yes
Adverse
No
Qualified
Think of all things previously done such as necessary companies act requirements
Be specific
Pervasive
Isa 705 5
Not just one element
Substantial proportion
Affect fundamentals of users understanding
Tabel
P 807
Isa 705 A1
After reporting
When even took place
Subs events 560
Think of every event as quantitatively or qualitatively material
Isolation as well as aggregate
Schedule of uncorrected misstatements
Compare total to the final materiality figure
Then have to ask management to adjust
At least table with assets, liabilities and sploci
Will also have to correctly dt and cr
Think hoe many will have to adjust to bring under the materiality figure
Evaluate whether reportable irregularities ito s44 apa
Such as fiduciary duty overridden etc
Qualification of opinon
Prior year unadjusted misstatements hsould again be evaluated this year
Will affect equity
At many times will have to give detial as to what the accounting treatment is