Other deficiencies that haven’t been
communicated by others but are
worthy of management’s attention
ISA 450
Misstatements
Communicate with
management
:
•
All misstatements accumulated
•
Request that they be corrected
•
For those they refuse to correct,
understand why and take that into
account when evaluating whether the
financial statements as a whole are
free from material misstatement.
Communicate with TCWG:
•
Uncorrected misstatements
– the effect they may have on the
auditor’s opinion
– request that they are corrected
•
Effect of uncorrected misstatements
related to the prior period on the
financial statements
Request a written representation from
management / TCWG that they believe
the uncorrected misstatements are
immaterial (individually and in aggregate)
In addition refer to ISA 260 (Revised for specific requirements in ISQC 1 and other ISA’s that refer to communications with TCWG.
Quick Reference Guide 15.1
Auditor’s opinions
Audit & Assurance
Chartered Accountants Program
Page 1 of 1
Quick reference guide 15.1 – Auditor’s opinions
Continues over page...
Has the auditor identified any issues during the audit that are material and/or pervasive and
will affect the reader’s understanding of the financial and/or non-financial information?
Auditor expresses an unmodified opinion*
Auditor expresses an unmodified opinion*
Limitation of Scope
Auditor has not obtained
sufficient appropriate audit
evidence
Misstatement
Auditor concludes that
there is a misstatement in
the financial / non-financial
information
Limitation is
pervasive
in
understanding
the financial
and/or
non-financial
information
Limitation is
material
in
understanding
the financial
and/or
non-financial
information
Misstatement
is
material
in
understanding
the financial
and/or
non-financial
information
Misstatement
is
pervasive
in
understanding
the financial
and/or
non-financial
information
Disclaimer of
opinion*
Adverse
opinion*
Qualified opinion*
NO
YES
Auditor determines the appropriate opinion depending on how material
or pervasive the issues are to the reader’s understanding of the financial and
non-financial information
Quick Reference Guide 15.1
Auditor’s opinions (cont.)
Audit & Assurance
Chartered Accountants Program
Page 2 of 1
Quick reference guide 15.1 – Auditor’s opinions
Has the auditor identified any matters that, although appropriately presented or disclosed in the
financial and/or non-financial information, are of such importance that they are fundamental to the
reader’s understanding of the financial and/or non-financial information?
No Emphasis of Matter paragraph
Include Emphasis of Matter paragraph**
Has the auditor identified any other matter that is, in the auditor’s judgement, relevant to the reader’s
understanding of the financial and/or non-financial information but not appropriately presented or
disclosed?
