Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › BPP Mock exam 1, qsn:11
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- October 27, 2016 at 1:14 pm #346278
Dear Tutor,
could you please help me why answer C in the question below is wrong. The correct answer is D.Which of the following statements correctly describe the auditor’s responsibility in respect of misstatements?
A ISA 450 Evaluation of misstatements identified during the audit states that the auditor only has a responsibility to accumulate material misstatements identified during the audit
B Where misstatements are not material the auditor should request that management to correct themisstatements in the following accounting period
C If management refuses to correct some or all of the misstatements, the auditor should consider the implications of this for their audit opinion
D A written representation should be requested from management to confirm whether they believe that the effects of the unadjusted misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole
October 27, 2016 at 4:10 pm #346307D is certainly correct and is an ISA 450 para 11 requirement.
However, I’m not sure why C is not also correct: uncorrected material misstatements will affect the audit report.
October 27, 2016 at 5:14 pm #346318Thank you for your quick reply.
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