As a part of the audit, I was concerned with the completeness, accuracy, and cutoff …show more content…
Furthermore, I would need to obtain an understanding of the nature and cause of the misstatements (i.e. differences in application or principle, error or fraud, misunderstanding or carelessness, etc.) and possible relationship of the misstatements to other phases of the audit. Based upon my testing, I am confident that the sales discount is fairly stated. I feel that the 63 invoices are a fair representation of the population over the course of a fiscal year and the misstatements appear to be a result of error. The amount of misstatement was immaterial in relation to the allotted amount in W/P 2-1. If I believed that the sales discount account wasn’t fairly stated, I would obtain more evidence through inspection of bank statements before soliciting a meeting with you to discuss my