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hello and welcome to the session this is Professor Farhad and this session will work an example that deals with completing the auditing cycle and specifically were going to be deal on how to evaluate evidence so how do we evaluate evidence at the end of the period so this is the example that we are going to be working with the following items were discovered during 2016 during December 31st 2016 audit of the financial statement so we have we are giving six situation and we are told to prepare an adjustment misstatement or that schedule using the following format so basically the total amount of the misstatement how does it affect current asset non-current assets current liabilities non current liabilities and whats the effect on the net income balance sheet and income statement materiality for the audit is 75,000 what is your conclusion about the financial statement if the audit finding are not correct okay by the company before you should report so basically lets look at it step b
