Uncorrected misstatements
Uncorrected misstatements are misstatements identified during an audit that management has not corrected. The auditor evaluates whether they are material individually or in aggregate, considering quantitative and qualitative factors.
Worked example
Management declines to correct several errors; the auditor aggregates them and evaluates their nature and effect on the opinion.
Common mistake
Do not assess each error in isolation and ignore the combined effect on the financial statements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |