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ASA 450 - Evaluation of Misstatements Identified during the Audit - October 2009
Communication and Correction of MisstateCommunication and Correction of Misstatements
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Communication and Correction of Misstatements
- The auditor shall communicate, unless prohibited by law or regulation, on a timely basis all misstatements accumulated during the audit with the appropriate level of management.[3] The auditor shall request management to correct those misstatements. (Ref: Para. A10‑A12)
- If management refuses to correct some or all of the misstatements communicated by the auditor, the auditor shall obtain an understanding of management’s reasons for not making the corrections and shall take that understanding into account when evaluating whether the financial report as a whole is free from material misstatement. (Ref: Para. A13)