Identified & Corrected Misstatement Task - Step-1 : Record Identified Misstatements

Identified & Corrected Misstatement Task can be started once the Determine Materiality and the FSLI Testing tasks have been completed and marked as Complete. The final task under Materiality & Testing is the Identified & Corrected Misstatement Task. All Line items where the PMS amount has been entered in the FSLI testing task under BS and PL will be listed here, both at the FSLI and ledger level. The default View includes the columns:

• Testing Level - FSLI Item or Ledger 
• Head Name 
• Closing Balance 
• Value of Potential Misstatement (PMS): PMS amounts entered for the linked items in the FSLI Testing task  
• Remarks for PMS 
• Identified Misstatement (Yes/No): When the user clicks on edit (Actions Column), the field is enabled with drop-down options, Yes/ No

1. If Identified Misstatement = No: IMS Amount field is disabled, and defaults to 0 on save; the linked item will be displayed in Step 2
2. Identified Misstatement = Yes: the IMS Amount field is enabled and the user can enter amount (positive, negative, and 0 allowed); linked item is shown in Step-2 if IMS <> 0.
3. Switch Yes ➔ No: The system shares a toast message indicating the IMS amount will reset to 0, and the linked item will be removed from Step 2.

• Value of Identified Misstatement (IMS): This is a user-enterable field; the field will be enabled if the drop-down selection under the field Value of Identified Misstatement (Yes/No) is = Yes

1. Default values for all line items will be blank.  The user can enter any amount into the field (positive/negative).  
2. The field accepts only numeric values. 
3. There are no validations for the entered amount against the closing balance of the PMS amount.