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)

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