Each SRM includes a Summary of audit differences (SAD). The SAD is a required form and is used to accumulate and summarize misstatements on all engagements.
Please report all misstatements to component management as they arise and request component management to correct all proposed misstatements above SAD nominal amount arising from our procedures.
All misstatements above the SAD nominal amount are included in the SAD. Provide adequate explanation of the nature of each misstatement (including a brief discussion of component management's position and an explanation of your position) in the SRM and note whether it has been discussed and cleared with component management.
In order for us to appropriately communicate with those charged with governance, we need to be aware of any misstatements corrected by component management above SAD nominal amount within their reported results. Accordingly, please communicate corrected misstatements in the SAD template.
Teams include in their SRM the SAD conclusion page of the SAD form.