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Wiley Practitioner's Guide to GAAS 2023, 2nd Edition
book

Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

by Joanne M. Flood
April 2023
Intermediate to advanced content levelIntermediate to advanced
1056 pages
34h 59m
English
Wiley
Content preview from Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

14AU-C 450 Evaluation of Misstatements Identified during the Audit

SCOPE

The auditor must evaluate the effect of identified misstatements and uncorrected misstatements. AU-C 450 provides guidance on the evaluation. AU-C 700 and AU-C 703 address the auditor's responsibility to form an opinion based on the audit evidence obtained. (AU-C 450.01)

DEFINITIONS OF TERMS

Source: AU-C 450.04. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Misstatement, Uncorrected misstatements.

OBJECTIVE OF AU-C 450

The objective of the auditor is to evaluate the effect of:

  1. Identified misstatements on the audit and
  2. Uncorrected misstatements, if any, on the financial statements

    (AU-C Section 450.03)

THE NATURE AND CAUSES OF MISSTATEMENTS

A misstatement may consist of:

  • An inaccuracy in gathering or processing data from which financial statements are prepared
  • An omission of an amount or disclosure, including inadequate or incomplete disclosures and omission of disclosures required to meet disclosure objectives of financial reporting framework
  • Financial statement disclosures that are not ...
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Publisher Resources

ISBN: 9781394152704Purchase Link