SA 450: Evaluation of Misstatements Identified During the Audit

This Standard on auditing deals with the auditor’s responsibility to evaluate the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements. This standard defines the terms “Misstatement” and “Uncorrected misstatements” and also deals with the aspects like accumulation of identified misstatements, consideration of identified misstatements as the audit progresses, communication and correction of misstatements, evaluating the effect of uncorrected misstatements, written representation and documentation.