23) Evaluation and Conclusion

Question 1

when may the audit strategy/plan need to be revised?

Answer 1

• if nature of MS indicate that there may be more that exist that will aggregate to materiality
• aggregate MS found in the audit approach materiality

Question 2

what will the auditor do with all the MS found?

Answer 2

communicate them with mgmt and request that they correct them

Question 3

what if mgmt refuses to correct the MS?

Answer 3

obtain an understanding of mgmt’s reasons and take that into account when evaluating if FS as a whole are MS

Question 4

what must the auditor do prior to evaluating the effect of uncorrected MS?

Answer 4

reassess materiality to see if it is still appropriate

Question 5

which MS should be aggregated?

Answer 5

all those except any trivial ones

Question 6

what do we do with MS which cannot be aggregated?

Answer 6

document and evaluate them on an individual basis

Question 7

what does the audit need in order to form an audit opinion?

Answer 7

reasonable assurance that the FS as a whole are free from MMS, based on sufficient audit evidence

Question 8

what is a positive audit opinion?

Answer 8

unmodified

Question 9

what happens if there is a negative audit opinion?

Answer 9

modify the opinion using the table