CTHRepealedLegislation
ASA 720 - The Auditor’s Responsibilities Relating to Other Information in Documents Containing an Audited Financial Report - October 2009
Material Misstatements of FactMaterial Misstatements of Fact
Start here
Get a plain-English read of Material Misstatements of Fact
Turn the raw legal text into a practical explanation grounded in ASA 720 - The Auditor’s Responsibilities Relating to Other Information in Documents Containing an Audited Financial Report - October 2009.
Material Misstatements of Fact
- If, on reading the other information for the purpose of identifying material inconsistencies, the auditor becomes aware of an apparent material misstatement of fact, the auditor shall discuss the matter with management. (Ref: Para. A10)
- If, following such discussions, the auditor still considers that there is an apparent material misstatement of fact, the auditor shall request management to consult with a qualified third party, such as the entity’s legal counsel, and the auditor shall consider the advice received.
- If the auditor concludes that there is a material misstatement of fact in the other information which management refuses to correct, the auditor shall notify those charged with governance, unless all of those charged with governance are involved in managing the entity, of the auditor’s concern regarding the other information and take any further appropriate action. (Ref: Para. A11)
* * *