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Hi Mike
Does the uncorrected misstatement mean that the auditors were not able to identify and correct the misstatement purposely? Or does it mean that the managemnt has not reflected the identified misstatement in the books?
“Does the uncorrected misstatement mean that the auditors were not able to identify and correct the misstatement purposely?”
No
It means that the auditors have discovered the misstatement, have asked the management to correct that misstatement and management has refused the auditors’ request so that misstatement remains within the financial statements
The auditors are now faced with the decision as to how material that uncorrected matter is and does it warrant an “except for” qualification or an “adverse” opinion
(I asume that you’re talking about material misstatements and not about inconsistencies or misleading statements)
OK
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