27.Evaluating the effects of misstatements
The auditor should assess whether the aggregate of uncorrected misstatements that had been identified during the audit is material.
The aggregate of uncorrected misstatements comprises:
specific misstatements identified by the auditor.
the auditor's best estimate of other misstatements which cannot be specifically identified.
If the auditor concludes that the misstatement may be material, the auditor needs to consider reducing audit risk by extending audit procedures or requesting management to adjust the financial statements.
If management refuses to adjust the financial statements and the results of extended audit procedures do not enable the auditor to conclude that the aggregate of uncorrected
misstatement is not material, the auditor should consider appropriate modification of the auditor's report.