Evaluation of misstatements

1. Factual misstatements

　事実上の Misstatements、間違いなく Misstatements。

2. Judgmental misstatements

　Auditor が Inappropriate と Consider する Accounting policies が、Management の Judgment で Select されたことによる Misstatements。

3. Projected misstatements
　Sampling により Estimate された Misstatements。

○Communication
　Auditor は、すべの Misstatements を Timely basis で The appropriate level of management に Communicate、Misstatements の Correct を Request。

○Correction
　Misstatements の Correct は Management が行う。Auditor は Misstatements が Remain していることを確認するために Additional procedure を Perform。

　もし Management が Correction を Refuge したら、Reason についての Understanding を Obtain。Financial statement が Material misstatements でないか Consider。

○Uncorrected misstatements
　Auditor は、Uncorrected misstatements が Material か Determine するために以下について Consider。

• The size and nature of the misstatements
• The effect of uncorrected misstatements related to prior periods

　Uncorrected misstatements の Effect を Evaluate するために以下について Consider。

• Compliance and regulatory requirements
• Debt covenants
• The effect on future periods’ financial statements
• The effects on changes in earnings (such as changing income to a loss or vice versa) or other trends
• The impact on ratios
• The effects on segment information
• An effect that increases management compensation
• The omission of information important to users’ understanding
• The misclassification between operating⁄non-operating items or recurring⁄non-recurring items.

○Documentation
　Auditor は Misstatement について Documentation

• The amount below which misstatements would be viewed as clearly trivial
• All misstatements accumulated during the audit and whether they have been corrected 
• The auditor’s conclusion (and the basis for that conclusion) about whether the uncorrected misstatements are material, individually or in the aggregate.