ASA 320 - Materiality and Audit Adjustments - April 2006
Reporting ResponsibilitiesReporting Responsibilities
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Reporting Responsibilities
34 The auditor shall express a modified opinion in accordance with ASA 701 Modifications to the Auditor’s Report, if:
(a) those charged with governance refuse to adjust the financial report for material misstatements; and
(b) the results of extended audit procedures do not enable the auditor to conclude that the aggregate of uncorrected misstatements is not material.
Management Representations
35 When the auditor concludes that uncorrected misstatements are immaterial individually and in aggregate to the financial report, the auditor shall endeavour to obtain representations from management to acknowledge:
(a) uncorrected misstatements have been brought to their attention by the auditor; and
(b) they have considered the effect of any uncorrected misstatements, aggregated during and pertaining to the latest period, on the financial report and consider the misstatements are immaterial individually and in aggregate to the financial report taken as a whole.
Communication with Those Charged with Governance
36 Mandatory requirements and explanatory guidance regarding communications about uncorrected misstatements to those charged with governance are set out in ASA 260 Communication of Audit Matters with Those Charged With Governance.