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ASA 450 - Evaluation of Misstatements Identified during the Audit - October 2009
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- For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
- Misstatement means a difference between the reported amount, classification, presentation, or disclosure of a financial report item and the amount, classification, presentation, or disclosure that is required for the item to be in accordance with the applicable financial reporting framework. Misstatements can arise from error or fraud. (Ref: Para. A1)
When the auditor expresses an opinion on whether the financial report is presented fairly, in all material respects, or gives a true and fair view, misstatements also include those adjustments of amounts, classifications, presentation, or disclosures that, in the auditor’s judgement, are necessary for the financial report to be presented fairly, in all material respects, or to give a true and fair view.
- Uncorrected misstatements means misstatements that the auditor has accumulated during the audit and that have not been corrected.