Page 18 - PowerPoint Presentation

IMPORTANT ELEMENTS OF THE AUDIT PROCESS

QUALITATIVE MISTATEMENTS

• Relates to disclosures, for example:

• Inadequate or improper description of accounting

policies

• Related party transactions

• Directors’ remuneration

• Litigation in which the client is involved

• Failure to disclose the possible cancellation of a

manufacturing licence or the loss of a major substantial

market.

• The auditor will need to ensure that all the

qualitative misstatements are appropriately

addressed.

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