SA 240

Stat Audit 381 views 3 replies

SHINY

CA Final Student

699 Points Joined February 2012

Hello Mates

Kindly address my below mentioned query:

Wts d difference b/w risk of material misstatement at Financial Statement level & Assertion level (accounting transactions, account balances & disclosures) as far as SA 240, viz. 'Responsibilities of Auditor in material misstatements due to fraud' is concerned ?

Thanks in advance.

Replies (3)

sanjay acharya

clerk

50 Points Joined May 2013

im very simple words romms at a. assersation level means romms at th tim of recording of transaction due to laking interal control b. f/s level means romms while finalinsing the accounts of entity due to malafied intetion of mgt........ sanjay acharya

ajay

Student

178 Points Joined March 2015

Risk of material misstatement at financial statement level means some thing wrong happen at financial statement level i.e. balance sheet, profit & loss, cash flow statement

where as risk of material misstatement at assertion level means some thing wrong happens at transactional level i.e. existence, ownership, rights, valuation, disclosures, completeness of each & every individual transaction