Page 22 - PowerPoint Presentation

IMPORTANT ELEMENTS OF THE AUDIT PROCESS

CONSIDERATIONS WHEN EVALUATING

UNCORRECTED MISTATEMETS

• Refer to pages 7/28 of Auditing Notes.

• Generally include the following;

• Factual, judgemental or projected misstatements

• Offsetting (not allowed!)

• Compliance with regulatory requirements

• Compliance with debt covenants or other contractual

requirements

• Impact on ratios and trends

• Effect of increasing management earnings

• Relates to items involving particular parties

• Reflects a level of dishonesty by the directors

22