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sir i dont get this thing in the examiner answers where sometimes the examiner talks about mistatement individually and some places he says that , they should be taken as a whole and are material, on what basis does he he group them up? in what circumstamces will we group them
“in what circumstamces will we group them”
In every audit!
A schedule will be prepared with 4 columns – 2 each for the Statement of Profit or Loss and Statement of Financial Position – showing debit and credit for SoPoL and Assets and Liabilities for SoFP
Whenever a misstatement is discovered during the audit, that error will be noted on the schedule even though, individually, it is immaterial
At the end of the audit, the 4 columns are aggregated to see what is the total of unadjusted errors
Then we can determine whether that total is material or not
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