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Hi,
Suppose a matter is not material individually but is a misstatement which the management have denied to rectify. if the same matter is added to schedule of other uncorrected misstatements, the total will become material. this is classed as not having any impact on the auditor’s report( from specimen mock in the ACCA website). sir, did we not said a material misstatements shows that the financial statements does not present fairly? so how will this material misstatements not have any impact on the audit report.Thanks,kim.
Per page 35 of the notes:
“All misstatements identified should be communicated to management who should be asked to
correct them or to explain why not. The auditors must assess the materiality of uncorrected
statements and obtain written representations from management that they believe uncorrected
misstatements to be not material. (see Chapter 28)”If the aggregate is material, management must make SOME correction to reduce it to less than the materiality threshold – otherwise the auditor would have to qualify the audit opinion.
Thanks for this. One more thing, not related to this matter though. Now that exams is near what advice will you give at this stage of revision, also confirm if it is allowed to use short form like TCWG,NCA,GDN,GRN … in exam.
See here https://opentuition.com/topic/can-we-use-pv-fv-ly-ye-in-paper
If GDN/GRN or anything else is USED in the scenario, there is no need to write it out in full at all in the answer. I would not use NCA as PPE (after it has been written out in full) is more specific when you mean tangible non-current assets or IP if you mean investment property (not to be confused with intellectual property, which is why writing out in full is important).
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