Summary of Uncorrected Misstatements (SUM)

The federal entity’s auditor should communicate factual, projected, and judgmental misstatements identified during the audit using a Summary of Uncorrected Misstatements (SUM) to the appropriate level of management and those charged with governance, as required by AU-C 450 and AU-C 260. The auditor should request management to correct all factual misstatements. If management corrects one or more of the identified misstatements to the financial statements, the auditor should use the SUM (before discussion with management) to create a new SUM (after discussion with management) for any remaining uncorrected misstatements. The auditor should attach the SUM without the auditor's calculations, evaluation, and conclusion (or a listing of uncorrected misstatements if the number and amount of the misstatements are insignificant) to the management representation letter as discussed in Financial Audit Manual 1001.