Projecting Misstatements (Ref: Para. 14)Projecting Misstatements (Ref: Para. 14)

Projecting Misstatements (Ref: Para. 14)

1. The auditor is required to project misstatements for the population to obtain a broad view of the scale of misstatement but this projection may not be sufficient to determine an amount to be recorded.
2. When a misstatement has been established as an anomaly, it may be excluded when projecting misstatements to the population. However, the effect of any such misstatement, if uncorrected, still needs to be considered in addition to the projection of the
   non-anomalous misstatements.
3. For tests of controls, no explicit projection of deviations is necessary since the sample deviation rate is also the projected deviation rate for the population as a whole. ASA 330[3] provides guidance when deviations from controls upon which the auditor intends to rely are detected.