What does the SUM mean in audit?
SUM stands for “summary of uncorrected misstatements”. The SUM is a workpaper or excel file that is reviewed at the conclusion of an audit.
Throughout the audit, management or the audit team might find a misstatement, but unless its a material misstatement, the company may choose not to adjust the financial statements.
The audit team should track all of the “uncorrected misstatements” so that the company and the audit team can make sure that the misstatements don’t result in a material misstatement when aggregated.
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