AUDIT SCOTLAND EXTERNAL AUDITORS’ PLAN

FOR THE YEAR ENDED 31 MARCH 2016

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6.2 The level of testing is based on our assessment of the risk that an item in the financial statements may be materially misstated. As such the audit cannot be relied upon to identify all potential or actual misstatements in the financial statements. Both quantitative and qualitative matters are considered. Materiality is a key driver in risk assessment, as we are concerned with risks that may lead to material misstatement in the financial statements.

6.3 We will communicate to the organisation’s management any potential

misstatements that we have identified during the course of our audit work. Any decision to amend or not to amend the financial statements lies with the organisation’s management. We would request that the financial statements are amended for any material errors.

6.4 We will then provide the Board of Audit Scotland with details of any uncorrected

misstatements that have not been adjusted for in the financial statements unless they are considered ‘clearly trivial’. We will ask the organisation to confirm, within the Letter of Representation, that they believe no adjustment is required and the reasons for this decision.