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?
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EVALUATION
9y ago#1Mike 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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