Misstatements and Internal Control Deficiencies

Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 32 min read, ~4,817 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 (far below materiality) on a schedule of unadjusted differences. Evaluate materiality both individually and in the aggregate, including the carryover effect of prior-period uncorrected items...

What this lesson covers

• Content
• Example 1
• Example 2
• Example 3
• Example 4
• Example 5
• Example 6
• Example 7
• Example 8
• Example 9
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.F1

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