ISA 450 — Evaluation of Misstatements Identified during the Audit
ISA 450 is an international pronouncement addressing accumulating and evaluating identified misstatements and their effect. It addresses accumulation of identified misstatements and evaluation of uncorrected misstatements individually and in aggregate. The auditor communicates misstatements, requests correction where required and considers their effect on the opinion, including qualitative aspects.
Worked example
The auditor aggregates uncorrected errors and considers both their amount and nature before concluding.
Common mistake
Do not consider each uncorrected misstatement separately while ignoring the aggregate effect and qualitative factors.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |