One of IRBA’s biggest findings related to a significant lack of or insufficiently documented audit evidence: • Of material misstatements not identified • Regarding the engagement team’s assessment of unadjusted audit misstatements and an inappropriate evaluation of the aggregated unadjusted audit misstatements This session will clarify what to do when certain misstatements have been identified and how to extrapolate misstatements identified in your sample selected.

• When to use performance materiality. • Calculation of final materiality. • When to carry prior year unadjusted audit misstatements over to the current year. • Material misstatements. • Evaluation of the aggregated unadjusted misstatements (Individual, in the aggregate, and per category) – Schedule of overs and unders • Extrapolation of misstatements identified in samples selected. • Consideration when your audit plan and strategy might have to change. • When to report to those charged with governance.

Auditors: Partners, Managers, and 1st to final-year trainees.