Materiality is an important audit concept because audits must be designed to detect material misstatements. Required a.

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Materiality is an important audit concept because audits must be designed to detect "material" misstatements.

Required

a. Define materiality and describe how it is used in both accounting and auditing.

b. Should the determination of the materiality be discussed with

(i) The audit committee and

(ii) Management before the beginning of the audit engagement? Explain your rationale.

c. What factors might an auditor look at in determining materiality for an audit client prior to the start of the audit?

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Auditing a business risk appraoch

ISBN: 978-0324375589

6th Edition

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

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Question Posted: Dec 29, 2012 05:49 AM

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Materiality is an important audit concept because audits must be designed to detect material misstatements. Required a.

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a Materiality is defined as the Magnitude of an omission or misstatement of accounting information that in light of surrounding circumstances makes it ...View the full answer

Auditing a business risk appraoch

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