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About Audit One, CH 3 - 2022 Version-Student Copy - Revised PDF
This chapter discusses materiality and risk assessment in auditing. It defines materiality as a misstatement that would affect the decisions of a reasonable user. The auditor must make a preliminary judgment of materiality and allocate it to segments of the audit. Materiality is determined based on the size, nature, and circumstances of a misstatement. The auditor also considers reliability, precision, and evidence needed in determining materiality. Common rules of thumb for setting materiality include 5-10% of net income, assets, or revenues.
Detailed Information
Author: | ['Utban Ashab'] |
---|---|
Publication Year: | 2023 |
Pages: | 19 |
Language: | English |
Format: | |
Price: | FREE |
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