Aggregation, classification, communication and final evaluation of misstatements.
To evaluate the effect of identified misstatements on the audit and of uncorrected misstatements on the financial statements.
SA 450 sits in the Concluding phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 450 into practice — built from the ICAI working-paper set, free to download.
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SA 450 — Evaluation of Misstatements Identified During the Audit — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Aggregation, classification, communication and final evaluation of misstatements. To evaluate the effect of identified misstatements on the audit and of uncorrected misstatements on the financial statements.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 450 in the concluding phase, that means evidencing: Accumulation of misstatements (other than clearly trivial); Classification by type — factual, judgemental, projected; Communication to management on a timely basis; request for correction.
