Misstatements and Internal Control Deficiencies

Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 15 min read, ~2,242 words.

Three misstatement types under AU-C 450: factual (objectively incorrect), judgmental (management estimate vs. auditor estimate), projected (sample extrapolation). Accumulate every misstatement except those clearly trivial, on a schedule of unadjusted differences. Evaluate materiality both individually and in the aggregate. Request management correct all factual misstatements; refusals get communicated as uncorrected...

What this lesson covers

• Content
• Example 1
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• III.F1

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