What is Uncorrected misstatements?
Misstatements that the auditor identified and accumulated during the audit, but that the company's management did not correct in the financial statements. ISA 450 defines them as a separate term, because it is exactly this remainder that affects the auditor's opinion: a corrected error is no longer in the statements, while an uncorrected one remains. The auditor accumulates all misstatements except those that are clearly trivial (very small), asks management to correct them and, at the end, evaluates the combined effect of those left uncorrected by comparing it with materiality. If the effect is material, it may affect the type of opinion in the auditor's report. Each misstatement and whether it was corrected or not is recorded in the audit documentation.
Source: 450-son AXS (ISA 450), 4-band; IAASB: 2013 Handbook (ISA 450)