Errors
Worksheet — Summary of identified misstatements
Entity Period ended
335
Page 1 of 2
Objective: To document misstatements identified during the audit and to evaluate: - The effect of identified misstatements on the audit. - The effect of uncorrected misstatements, if any, on the financial statements.
Performance materiality
Insignificant misstatements under $
need not be recorded below.
Amount of over (under) misstatement in the financial statements Circumstances of occurrence Pre-tax income Corrected? Yes/No W/P ref.
Description
Assets
Liabilities
Equity
F/S disclosures
Total of identified misstatements during the audit Misstatements corrected by management Total uncorrected misstatements Effect on income taxes on uncorrected misstatements Effect of uncorrected misstatements from prior periods Uncorrected misstatements to be carried forward
C•PEM Forms — Audits
April 2010
Worksheet — Summary of identified misstatements
EVALUATION OF MISSTATEMENTS 1. 2. Update overall and performance materiality for any revisions required during the audit. (Form 420) Ask management to correct all identified misstatements and summarize management’s reasoning as to why any misstatements have not been corrected. Describe any patterns in the misstatements that might indicate possible management bias or possible fraud. Describe the effect of individually material misstatements, if any, (such as in sales) where an offset by other misstatements (such as in expenses) would be inappropriate. Describe the effect of any classification misstatements on areas such as debt or other contractual covenants (such as government funding criteria), individual line items or subtotals, and key ratios. Describe any additional work required such as when uncorrected misstatements are close to exceeding performance materiality. Initials & date Comments
335
Page 2 of 2 W/P ref.
3. 4.
5.
6.
CONCLUSION In my opinion the uncorrected misstatements
Entity Period ended
335
Page 1 of 2
Objective: To document misstatements identified during the audit and to evaluate: - The effect of identified misstatements on the audit. - The effect of uncorrected misstatements, if any, on the financial statements.
Performance materiality
Insignificant misstatements under $
need not be recorded below.
Amount of over (under) misstatement in the financial statements Circumstances of occurrence Pre-tax income Corrected? Yes/No W/P ref.
Description
Assets
Liabilities
Equity
F/S disclosures
Total of identified misstatements during the audit Misstatements corrected by management Total uncorrected misstatements Effect on income taxes on uncorrected misstatements Effect of uncorrected misstatements from prior periods Uncorrected misstatements to be carried forward
C•PEM Forms — Audits
April 2010
Worksheet — Summary of identified misstatements
EVALUATION OF MISSTATEMENTS 1. 2. Update overall and performance materiality for any revisions required during the audit. (Form 420) Ask management to correct all identified misstatements and summarize management’s reasoning as to why any misstatements have not been corrected. Describe any patterns in the misstatements that might indicate possible management bias or possible fraud. Describe the effect of individually material misstatements, if any, (such as in sales) where an offset by other misstatements (such as in expenses) would be inappropriate. Describe the effect of any classification misstatements on areas such as debt or other contractual covenants (such as government funding criteria), individual line items or subtotals, and key ratios. Describe any additional work required such as when uncorrected misstatements are close to exceeding performance materiality. Initials & date Comments
335
Page 2 of 2 W/P ref.
3. 4.
5.
6.
CONCLUSION In my opinion the uncorrected misstatements