12 January 2017
Auditor should consider size and nature of uncorrected misstatements when evaluating their effect on financial statements
plz explain with example meaning of ' nature of misstatement '
13 January 2017
The nature of misstatement signifies its impact on the financial statement. If the misstatement is related wrong payment of TDS or service tax amount, the impact would be more than the depreciation calculation.
Lets say that INR 200 is less paid for TDS has more impact than INR 200 less calculated for depreciation even though the size may not be material.
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