Page 212 - CA Inter Audit PARAM

CA Ravi Taori
QNO— Documentation Under SA 450 New Course – (SM25/M24E)
450.100 Bhaskar CNO - SA450.160
Discuss documentation requirements for an auditor regarding misstatements identified during audit
under SA 450.
OR
Mr. D an auditor, while auditing ACE Ltd., identified certain misstatements in relation to particular class
of transactions and account balances. He had communicated same to those charged with governance
and also taken written representation for the same. State the audit documentation required by the
auditor regarding misstatements identified during the audit.
Answer The audit documentation shall include:
• Clearly Trivial Misstatement Threshold: The amount below which misstatements would be
regarded as clearly trivial.
• Record of Accumulated Misstatements: All misstatements accumulated during the audit and
whether they have been corrected.
• Conclusion on Materiality of Uncorrected Misstatements: The auditor's conclusion as to whether
uncorrected misstatements are material, individually or in aggregate, and the basis for that
conclusion.

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