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Hello Sir Mike,
I dont get the process of evaluating missratements, like as the auditor identifies misstatement he groups them up , and communicates to the management , but why in completion stage they group them up again?
Mike is not the OpenTuition tutor for F8.
Grouping misstatements is to see whether, when taken together, misstatements might become material.
So $30,000 understatement in wages and $25,000 understatement in depreciation will affect the profit by only $5,000. However, if both were the same direction, profits would be wrong by $55,000.
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