A essential element of this review may be the assessment of misstatements discovered through the review. This short article defines and covers certain requirements of ISA 450, Evaluation of Misstatements Identified through the Audit and offers a few examples regarding the application for the ISA into the context of this Advanced Audit and Assurance exam.
ISA 450 – goals and definitions
Based on ISA 450, the goals associated with auditor are to guage:
- The effect of identified misstatements from the review, and
- The result of uncorrected misstatements, if any, in the statements that are financial
A misstatement does occur whenever one thing is not addressed properly within the economic statements, and thus the relevant reporting that is financial, specifically IFRS, will not be precisely used.