Uncorrected misstatement definition
Uncorrected misstatement means a misstatement that was discovered in a financial statement audit (difference between an amount in a financial statement item to be recorded and an amount of a financial statement item requested based on the framework of a financial report to be applied). The purpose of a financial statement audit is not to discover all misstatements, but it is to obtain reasonable assurance that there is no material misstatement on the whole, so even if an uncorrected misstatement is discovered in the process of an audit, the financial statement does not necessarily need to be corrected if that uncorrected misstatement is not material.