1. Padma Textiles Ltd's finance director asks the auditor not to send a confirmation request to Rahim Trading, whose receivable of CU 3.8 million is 22% of the year-end balance, because the balance is in dispute and a request would damage the relationship. Overall materiality is CU 1.2 million. After inquiry, the auditor considers the reasons given to be plausible. What should the auditor do next?

A) Accept the finance director's written representation on the dispute as sufficient evidence, because management knows the customer
B) Treat the balance as unaudited and exclude it from testing, because confirmation is the sole source of reliable evidence
C) Seek support for management's reasons, then perform alternative procedures such as subsequent receipts and despatch records
D) Modify the opinion immediately, because management's request is a limitation on the scope of the audit of the receivables balance

Correct: C difficult ISA 505

ISA 505 requires the auditor, when management asks that a confirmation not be sent, to inquire about the reasons, seek evidence of their validity and reasonableness, consider the effect on risk assessment including fraud risk, and perform alternative audit procedures. A scope limitation arises only if the auditor cannot obtain sufficient appropriate evidence by those alternative procedures, so immediate modification is premature. Management's representation is internally generated and weak on its own, and confirmation is not the only procedure that gives evidence of existence and valuation. Alternative procedures such as post year-end cash receipts, despatch documents and correspondence on the dispute can provide that evidence.

2. Meghna Foods Ltd's trade payables per the ledger total CU 9.6 million. The auditor suspects that purchase invoices for goods received before 30 June were never recorded. Which population is most appropriate for selecting items to test the completeness of payables?

A) The purchase daybook for the year, traced to the ledger postings, since agreement shows that no liability has been left out
B) Payments made after the year end and unmatched goods-received notes, since omitted items cannot be found by sampling the ledger
C) The 30 June payable balances, agreed to supplier statements, since a sample of recorded balances tests completeness as well
D) The payables control account total, re-added and agreed to the trial balance, since arithmetic accuracy proves nothing is omitted

Correct: B difficult ISA 500

Credit balances such as payables are tested for understatement, so the auditor must select from a population outside the recorded balances that could reveal omitted items. The population must be independent of the recorded balances and appropriate for the objective (ISA 500), for example subsequent disbursements, unpaid invoices, supplier statements or unmatched receiving reports. Sampling recorded ledger balances or daybook entries tests existence or posting accuracy of items already recorded, so an unrecorded invoice has no chance of selection. Re-adding the control account checks arithmetic only and says nothing about completeness.

3. The firm was appointed auditor of Sundarban Ceramics Ltd after the start of the year ended 30 June. The predecessor auditor refuses access to its working papers. Opening inventory of CU 14.0 million is material (overall materiality CU 2.0 million). Despite attending the year-end count and testing cut-off and gross margins, the auditor cannot obtain sufficient appropriate evidence on opening inventory; the possible effect is material but not pervasive. What is the effect on the auditor's report?

A) An unmodified opinion with an Other Matter paragraph, because the prior-year statements were audited by the predecessor
B) A qualified opinion on the statements, because the limitation on evidence over opening inventory is material but not pervasive
C) A disclaimer of opinion, because any limitation on opening balances prevents the auditor forming an opinion on the statements
D) An adverse opinion, because opening balances lacking evidence mean the statements are materially and pervasively misstated

Correct: B difficult ISA 510

ISA 510 requires sufficient appropriate evidence that opening balances do not contain misstatements that materially affect the current period. If this evidence cannot be obtained, the auditor expresses a qualified opinion or disclaims an opinion, as ISA 705 directs. Where the possible effect is material but not pervasive, a qualified opinion is the appropriate scope-limitation response. An Other Matter paragraph cannot substitute for evidence, an adverse opinion needs known misstatement rather than a lack of evidence, and a disclaimer is reserved for pervasive effects.

4. For the year ended 30 June, Meghna Foods Ltd had a CU 40 million loan at 9% for the whole year and a CU 20 million loan at 10%, drawn on 1 January with no repayments. Interest expense per the ledger is CU 5.3 million. The auditor has set CU 0.4 million as the difference acceptable without investigation; overall materiality is CU 1.0 million. Which conclusion is correct?

A) Expected CU 4.6 million; the CU 0.7 million difference exceeds the threshold, so inquire and corroborate the explanations that management gives
B) Expected CU 4.6 million; the CU 0.7 million difference exceeds the threshold, so management's explanation alone is sufficient evidence
C) Expected CU 4.6 million; the CU 0.7 million difference is below overall materiality of CU 1.0 million, so no further work is needed
D) Expected CU 5.6 million, using full-year interest on both loans; the CU 0.3 million difference is within the threshold, so no further work

Correct: A difficult ISA 520

The expectation is CU 40 million x 9% = CU 3.6 million plus CU 20 million x 10% x 6/12 = CU 1.0 million, giving CU 4.6 million. The recorded CU 5.3 million differs by CU 0.7 million, which is above the auditor's CU 0.4 million threshold, so ISA 520 requires investigation by inquiry of management and corroboration of the answers with other evidence. Full-year interest on the second loan overlooks the part-year drawdown, and comparing the difference to overall materiality confuses the investigation threshold with materiality. Uncorroborated management explanations are not sufficient evidence.

5. In auditing the inventory obsolescence provision of Karnaphuli Steel Ltd, the auditor develops a range of reasonable outcomes from CU 3.2 million to CU 4.6 million, supported by sufficient appropriate evidence. Management has recorded a provision of CU 2.7 million. Overall materiality is CU 1.5 million. What amount should the auditor treat as the misstatement in the estimate?

A) CU 0.5 million, the difference between management's figure and the nearest end of the auditor's range, being outside it
B) Nil, because the CU 0.5 million shortfall is less than overall materiality and an estimate is a matter of management judgement
C) CU 1.9 million, the difference from the top of the range, because the auditor should require the highest reasonable provision
D) CU 1.2 million, the difference from the midpoint of the range of CU 3.9 million, as the midpoint is the best single estimate

Correct: A difficult ISA 540 (Revised)

Under ISA 540 (Revised), where the auditor uses a range and management's point estimate lies outside it, the misstatement is the difference between management's estimate and the nearest point of the auditor's range. Here that is CU 3.2 million less CU 2.7 million = CU 0.5 million. The midpoint and the top of the range overstate the misstatement, because any amount in the range is supported by evidence as reasonable. Materiality is applied when evaluating the accumulated misstatement, so it does not turn an identified difference into nil.

6. The auditor of Jamuna Distribution Ltd will use data analytics to test all 58,000 supplier payments in the year for duplicates and unusual amounts. The payments file was extracted by the client's IT department and shows a total of CU 412.6 million, which has not been compared with any other record. What should the auditor do first before relying on the output?

A) Obtain the IT department's written statement that the extract is complete, because a representation is adequate evidence on the data
B) Draw a sample of 60 payments from the file and project exceptions to all 58,000, because ISA 530 applies to every analytic procedure
C) Rely on the output, because analysing the whole population removes the risk that the data itself is incomplete or inaccurate
D) Reconcile the file's record count and total to the ledger, because results are only as reliable as the data's completeness

Correct: D difficult ISA 500

ISA 500 requires the auditor to obtain evidence about the accuracy and completeness of information produced by the entity before using it. Reconciling record counts and control totals to the ledger tests that the extract is complete, and testing 100% of the file is not audit sampling, so exceptions are investigated individually rather than projected. Analysing a whole population does not remove data-quality risk, and an assertion from the department that produced the file is weaker than the auditor's own reconciliation.

7. The audit of Bhola Shipping Ltd is being performed remotely. To test CU 22 million of property additions, the finance manager emails scanned purchase contracts and invoices from a personal mailbox. The auditor wants the most reliable evidence available remotely. Which approach is best?

A) Accept the scans, because digitised documents have the same reliability as originals once the finance manager confirms them on a video call
B) Accept the scans where file metadata shows creation before the year end, because the date of a digital file proves a document is authentic
C) Replace inspection with video-call inquiries of the finance manager, because inquiry is stronger evidence when documents cannot be handled
D) Direct a live screen-share to retrieve the originals from the entity's document system and corroborate selected invoices with suppliers

Correct: D difficult ISA 500

ISA 500 notes that original documents are more reliable than photocopies or scanned versions, and that evidence obtained directly by the auditor is more reliable than evidence supplied indirectly by the client. Directing retrieval of originals from the entity's system during a live session keeps the auditor in control of the process, and supplier corroboration adds external evidence. Scans sent from a personal mailbox could be altered, inquiry is weaker than documentary evidence, and file metadata is easily changed so cannot establish authenticity.

8. The auditor of Karnaphuli Steel Ltd has set a sample size of 60 for a test of controls over approval of purchase orders. Which one of the following changes, taken alone, would leave the required sample size broadly unchanged?

A) The population of purchase orders grows from 4,000 to 40,000, as size has a negligible effect on sample size in large populations
B) The tolerable deviation rate falls from 8% to 4%, because a lower tolerable rate can be supported by the same amount of evidence
C) The desired level of assurance rises from 90% to 95%, because extra confidence can be gained by evaluating the same sample better
D) The expected deviation rate rises from 1% to 3%, because a higher expected rate needs no more evidence of control operation

Correct: A difficult ISA 530

ISA 530 explains that sample size is driven mainly by the tolerable and expected deviation rates and the desired assurance, and that the number of sampling units has a negligible effect once the population is large. A lower tolerable rate, a higher expected deviation rate and a higher desired assurance each require a larger sample, because all demand more evidence to support the same conclusion. Growth in population from 4,000 to 40,000 therefore leaves the sample size broadly unchanged.

9. In testing receivables of CU 500,000 by monetary unit sampling, the auditor uses a sampling interval of CU 60,000 with a random start of CU 25,000. The ledger, in order, is: A 18,000; B 22,000; C 95,000; D 41,000; E 150,000; F 12,000; G 36,000; H 64,000; I 27,000; J 35,000. How many separate balances will be selected for testing?

A) Eight, because each selection point produces its own item for testing even where several points fall in the same balance
B) Three, because only balances larger than the CU 60,000 interval are selected, as smaller balances have no chance of selection
C) Six, because the eight selection points include three that fall in balance E, which is tested only once as a single item
D) Five, because all three selection points falling in balance E are removed as duplicates from the eight points

Correct: C difficult ISA 530

Selection points fall at CU 25,000, 85,000, 145,000, 205,000, 265,000, 325,000, 385,000 and 445,000, which is eight points. Against the cumulative balances these hit B (to 40,000), C (to 135,000), D (to 176,000), E (to 326,000, three points), H (to 438,000) and I (to 465,000). Balance E is one item tested once, so the eight points give six balances, not five, as only two of E's points are duplicates. Smaller balances are not excluded, since each has a chance of selection in proportion to its size.

10. The auditor tests a sample of receivables of CU 400,000 from a population of CU 8.0 million; tolerable misstatement is CU 110,000. The sample shows a CU 5,000 overstatement caused by a wrong price list, a CU 12,000 overstatement caused by a keying error during a one-off system outage, which extra work proves is an anomaly, and a CU 3,000 misposting between two customers that nets to nil within the receivables total. What is the misstatement to compare with tolerable misstatement, and the conclusion?

A) CU 112,000, being CU 5,000 projected at 20 times plus the anomaly unprojected, which exceeds tolerable misstatement so more work is needed
B) CU 17,000, being the overstatements found in the sample without projection, which is below tolerable misstatement so no more work is needed
C) CU 100,000, being CU 5,000 projected at 20 times with the anomaly ignored, which is below tolerable misstatement so no more work is needed
D) CU 340,000, being CU 17,000 projected at 20 times with the anomaly included, which exceeds tolerable misstatement so more work is needed

Correct: A difficult ISA 530

The sample covers CU 400,000 of CU 8.0 million, so the projection factor is 20. The CU 5,000 error is representative and projects to CU 100,000. The CU 12,000 error, once demonstrated to be an anomaly, is not projected, but it remains a known misstatement under ISA 530 and is added in full, giving CU 112,000. The misposting between customers does not change the total balance, so it is not a misstatement of the receivables total. CU 112,000 exceeds CU 110,000, so the auditor must reassess sampling risk and extend procedures or seek an adjustment.

11. The auditor of Surma Pharmaceuticals Ltd tests a payment authorisation control on a sample of 60 payments, planning on an expected deviation rate of 1% and a tolerable rate of 6%. Three sample items lack authorisation. Which conclusion is most appropriate?

A) Project the three deviations to the population as a monetary misstatement, because deviation results are extrapolated like errors
B) Conclude that the control is effective, because the 5% sample deviation rate is below the 6% tolerable rate, which is all that is required
C) Do not conclude the control operates as planned, because 5% exceeds the expected 1% and leaves little allowance for sampling risk below 6%
D) Conclude the control is ineffective and qualify the audit opinion, because the sample contained deviations from the prescribed procedure

Correct: C difficult ISA 530

The sample deviation rate is 3/60 = 5%, which is five times the 1% expected rate and close to the 6% tolerable rate. Because of sampling risk the true population rate could well exceed 6%, so the auditor cannot accept the planned reliance on the control. ISA 530 points the auditor to extend testing or raise the assessed risk of material misstatement and perform more substantive procedures. Rejecting the control outright goes beyond the evidence, and control deviations are rates, not monetary errors to project, and a control weakness does not itself modify the opinion.

12. Meghna Foods Ltd raised 2,400 sequentially numbered purchase orders in the year, in daily batches of 20; the last order of each batch is usually an urgent manual order. The auditor will select 60 orders by systematic selection with a random start. Which statement about the interval and the main risk is correct?

A) The interval is 40; a random start makes systematic selection statistically valid, so a batch pattern does not need to be considered
B) The interval is 40; as a multiple of 20 it picks the same batch position each time, so check the pattern or use random selection
C) The interval is 40; haphazard selection removes the pattern risk and is acceptable where the auditor uses statistical sampling
D) The interval is 60; the random start gives every order the same chance, so the batch structure is irrelevant to the representativeness

Correct: B difficult ISA 530

The interval is the population divided by the sample size, 2,400 / 60 = 40. Because 40 is a multiple of the batch size of 20, every selection would fall at the same position within a batch, possibly always an urgent manual order or never one. ISA 530 warns that the auditor must ensure the population is not structured so that the interval corresponds to a pattern. A random start does not cure this, and haphazard selection is not appropriate for statistical sampling, so random selection or a different interval is needed.

13. The auditor tests an approval control on a sample of 80 supplier invoices of Jamuna Distribution Ltd. Which one of the following events is an example of non-sampling risk rather than sampling risk?

A) The sample shows no deviations, but the rate of deviation in the whole population would have exceeded the tolerable rate
B) The sample of 80 is not fully representative, so the conclusion differs from testing all invoices with the same procedure
C) The sample shows six deviations and the control is rejected, but the rate in the whole population is below the tolerable rate
D) The auditor inspects a sampled invoice carrying a forged approval signature, misreads the evidence and records no deviation

Correct: D difficult ISA 530

ISA 530 defines sampling risk as the risk that the auditor's conclusion from a sample differs from the conclusion if the whole population were tested using the same procedure. Non-sampling risk covers any other cause of an erroneous conclusion, including inappropriate procedures and misinterpreting evidence or failing to recognise a deviation. The forged signature that was not recognised is a failure of the auditor's judgement, which a larger sample would not cure. The other events describe wrongly accepting or rejecting the control purely because the sample differs from the population.

14. Padma Textiles Ltd has 3,200 trade receivable balances totalling CU 48 million; 35 balances above CU 450,000 total CU 29 million. Overall materiality is CU 1.5 million. The auditor wants an efficient design for testing existence. Which design is most appropriate?

A) Test all 35 large balances and project any errors found in them to the other balances, because high-value items are most representative
B) Test only the 35 large balances, because they represent about 60% of value and the remainder is too small to need any work
C) Test all 35 large balances individually and sample from the other 3,165, projecting sample errors only to that remaining stratum
D) Draw one simple random sample from all 3,200 balances, because stratification removes randomness and invalidates sample conclusions

Correct: C difficult ISA 530

ISA 530 permits stratification, which reduces variability within each stratum and so lowers the sample size needed. The 35 key items, 60% of value, are tested individually, and their results are not projected because they are not representative of the small balances. The remaining CU 19 million exceeds materiality of CU 1.5 million, so it cannot be ignored and is sampled, with its errors projected only to that stratum. Stratifying does not invalidate sampling, because each stratum is still selected so that every unit has a chance of selection.

15. In the audit of Karnaphuli Steel Ltd, overall materiality is CU 500,000 and the clearly trivial threshold is CU 20,000. Identified items are: revenue cut-off overstating profit by CU 180,000 (management has since posted the correction); unrecorded accrual overstating profit by CU 210,000; projected inventory misstatement overstating profit by CU 90,000; provision difference overstating profit by CU 60,000; depreciation overstating expenses by CU 120,000; and overstated travel expense of CU 15,000. What is the net uncorrected misstatement, and the required action?

A) Profit overstated by CU 225,000, with the clearly trivial travel item included; accumulated items go to management only
B) Profit overstated by CU 420,000, before deducting the cut-off correction; all uncorrected items go to those charged with governance
C) Profit overstated by CU 360,000, ignoring the favourable depreciation item; items go to management as the total is below materiality
D) Profit overstated by CU 240,000, below materiality; accumulated items go to management and uncorrected ones to those charged with governance

Correct: D difficult ISA 450

ISA 450 requires the auditor to accumulate misstatements other than those that are clearly trivial, including factual, judgemental and projected items. The uncorrected profit overstatement is 210,000 + 90,000 + 60,000 less the 120,000 understatement = CU 240,000. The corrected revenue item is excluded, and the CU 15,000 travel item is below the trivial threshold. Although CU 240,000 is less than CU 500,000, the auditor still requests correction, communicates the accumulated items to management, and communicates uncorrected items to those charged with governance.

16. An auditor tests the overstatement of receivables at Kushtia Sugar Ltd using monetary unit sampling with an interval of CU 40,000, selecting the balance that contains each 40,000th CU. The ledger is P 25,000; Q 38,000; R 15,000; S 12,000; T 70,000; U 20,000; V 30,000; W 10,000; X 40,000; Y 20,000; Z 20,000. How many balances are selected?

A) 7
B) 5
C) 11
D) 6

Correct: D complex ISA 530

The cumulative totals are P 25,000; Q 63,000; R 78,000; S 90,000; T 160,000; U 180,000; V 210,000; W 220,000; X 260,000; Y 280,000; Z 300,000. The selection points are CU 40,000, 80,000, 120,000, 160,000, 200,000, 240,000 and 280,000. These fall in balances Q, S, T (which contains two points, 120,000 and 160,000), V, X and Y, so 6 balances are selected. The answer of 7 counts balance T twice, 5 omits one balance, and 11 is the whole ledger.

17. The audit manager of Faridpur Dairy Ltd is setting the sample size for tests of detail on receivables. Which change in circumstances would cause the sample size to increase?

A) An increase in the auditor's assessment of the risk of material misstatement
B) An increase in the tolerable misstatement set by the auditor
C) An increase in the use of other substantive procedures directed at the same assertion
D) An increase in the number of sampling units in an already very large population

Correct: A difficult ISA 530

ISA 530 lists the factors that influence sample size. A higher assessed risk of material misstatement increases the sample size. A higher tolerable misstatement decreases it, as does more use of other substantive procedures directed at the same assertion. An increase in the number of sampling units in a large population has a negligible effect on the sample size.

18. In a sample of supplier reconciliations at Peabody Ltd, the auditor finds one misstatement that she believes is not representative of the rest of the population. What is an anomaly in audit sampling?

A) Any misstatement found in the sample that is below the level of performance materiality set
B) A misstatement that management agrees to correct after the auditor has reported it to them
C) A misstatement demonstrably not representative of the population, which the auditor must prove
D) A deviation found in the sample that the auditor judges to be unimportant for the audit work

Correct: C difficult ISA 530

An anomaly is a misstatement or deviation that is demonstrably not representative of misstatements or deviations in the population. To treat an item as anomalous, the auditor has to be certain that it is not representative, and extra work is required to prove it. Being small, corrected by management or judged unimportant does not make an item an anomaly.

19. Danielle circularises receivables of Donothing plc and receives disagreements: (i) a payment sent two days before the year end and received after it; (ii) a credit note issued a month before the year end; (iii) a payment posted to the wrong customer account. Which two are NOT misstatements for projecting to the whole population?

A) (ii) and (iii)
B) (i) and (iii)
C) (i) and (ii)
D) (i), (ii) and (iii)

Correct: B difficult ISA 530

A payment in transit at the year end is only a timing difference, and a misposting between customer accounts does not affect the overall balance on the ledger, so neither is a misstatement for the purposes of drawing a conclusion on the population. A credit note issued a month before the year end which the customer has not seen suggests that credit notes may not have been processed to the ledger, an error that could also affect other balances.

20. The auditor selects a systematic sample of 30 invoices from a population of 900 sales invoices numbered 1 to 900, with a random start at invoice number 11. Which is the fifth invoice selected?

A) 150
B) 161
C) 101
D) 131

Correct: D complex ISA 530

The sampling interval is 900 / 30 = 30. The first item is invoice 11, so the selected items are 11, 41, 71, 101 and 131. The fifth item is 11 + (4 x 30) = 131. The answer 150 is simply 5 x 30, 161 is 11 + (5 x 30) and 101 is the fourth item.

21. To test whether a control over purchase invoices operated, an auditor at Bagerhat Foods Ltd selects 50 consecutive purchase invoices from the month of March. What is the main limitation of this block selection?

A) The sample is statistical, so results must be evaluated using probability theory and sampling risk
B) Errors found may not be projected, as misstatements may have occurred only in part of the period
C) The sample favours large items, so understated balances will be missed by the test
D) The sample cannot show whether a control was applied, since it covers only one month

Correct: B difficult ISA 530

Sequence or block selection can be used to check whether items have particular characteristics, such as whether a control was applied. However, it may produce samples that are not representative of the population as a whole, particularly if misstatements only occurred during a certain part of the period, so the misstatements found cannot be projected onto the rest of the population.

22. Which of the following is a disadvantage of monetary unit sampling (MUS) when testing the balances of a ledger?

A) It copes badly with understatements, as a CU not there cannot be selected, and with negative balances
B) It makes it hard to ensure that large items are tested, because only the small items get chosen
C) It cannot be used on computers, because the sampling interval must be set by hand for each ledger
D) It gives every item an equal chance whatever its size, so a large balance might not be selected

Correct: A difficult ISA 530

MUS ensures that every CU in a population has an equal chance of selection, so larger items are more likely to be selected and every material item is automatically sampled. It is easy to apply using computers. Its disadvantages are that it can be time consuming if computers are not used and that it does not cope well with understatements, because the computer cannot select a CU that is not there, or with negative balances.

23. The objective of an audit test at Mymensingh Textiles Ltd is to ensure that only genuine employees are paid. Which sampling approach suits the objective?

A) Select names from the HR records and trace each of them to the payroll
B) Select payslips from the payroll and recompute the net pay of each employee
C) Select names from the payroll and agree each person's details to the HR records
D) Select bank transfer lists and add up the totals to the payroll summary

Correct: C difficult ISA 530

The starting population must suit the test objective. To check that only genuine employees are paid, the sample is taken from the payroll and each name is agreed to the HR records. Starting with the HR records and tracing to the payroll only proves that genuine employees are being paid, and does not find fictitious employees added to the payroll.

24. The auditor of Rangpur Tobacco Ltd has accumulated several uncorrected misstatements, all below materiality for the financial statements as a whole. Which pair should be evaluated as material because of the circumstances?

A) An isolated misposting between two supplier accounts, and a bank reconciliation not prepared in August
B) An isolated misposting between two supplier accounts, and one that avoids breaching a debt covenant
C) One that enables the directors' bonus targets to be met, and a bank reconciliation not prepared in August
D) One that enables the directors' bonus targets to be met, and one that avoids breaching a debt covenant

Correct: D difficult ISA 450

Certain circumstances make a misstatement material even when it is below materiality for the financial statements as a whole, for example where it affects compliance with debt covenants or increases management's compensation, such as by ensuring bonus targets are met. A misposting between supplier accounts does not affect the overall balance, and a missed bank reconciliation is a matter for tests of controls, not a misstatement.

25. Management of Dhaka Logistics Ltd refuses to correct some misstatements that the auditor has identified. Which set of actions must the auditor take?

A) Correct the misstatements personally in the accounts and then issue an unmodified audit report to the members
B) Understand management reasons, assess materiality, tell those charged with governance, obtain a representation
C) Withdraw from the engagement at once and report the management of the company to the National Board of Revenue
D) Ignore the misstatements that are below materiality, since these need not be communicated to anyone at all

Correct: B difficult ISA 450

Where management refuses to correct misstatements, the auditor obtains an understanding of management's reasons, determines whether the uncorrected misstatements are material individually or in aggregate, communicates them to those charged with governance and requests correction, and requests a written representation that management believes the effects are immaterial. The auditor cannot correct the accounts personally, and non-trivial misstatements must be communicated.