Please enable JavaScript.
Coggle requires JavaScript to display documents.
Materiality (Characteristics ( Referenced in auditor’s responsibility…
Materiality
-
Steps in Applying
Planning
Set materiality for the financial statements as a whole: PJFM
maximum amount that statements could be misstated and still not affect users’ decisions
Factors
-
-
Qualitative factors also affect materiality.
SEC #108 require Auditor to consider qualitative and quantitative factors to assess materiality
there is no Guidelines for applying materiality, professional judgement is used
-
-
The magnitude of an omission or misstatement of accounting information that in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement