Page 21 - PowerPoint Presentation

IMPORTANT ELEMENTS OF THE AUDIT PROCESS

EVALUATING THE EFFECT OF UNCORRECTED

MISTATEMETS

1. Analyse and project the errors in samples over

the population sampled (error in sample/total

sample size*population value)

2. Decide whether further tests should be

conducted.

3. Discuss misstatements with management in an

attempt to have them rectified.

• Management may not want to correct for various

reasons (disagree with auditors, not regard the

stuff as material, have ulterior motives, regards it

as too much of a hassle, unconcerned about a

qualified opinion)

21

CharterQuest