Question: a) Materiality is a key auditing concept that is first assessed during the risk assessment phase of every audit. Explain the concept of materiality

a) Materiality is a key auditing concept that is first assessed during the risk assessment phase of every audit. Explain the concept of materiality and differentiate between Performance materiality and planning materiality (6 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

answers for auditing please Question 2 a) Materiality is a key auditing concept that is first assessed during the risk assessment phase of every audit. Explain the concept of materiality and...

Ivanhoe Company had a beginning inventory balance on July 1 of 350 units at a cost of $3.10 each. During the month, the following inventory transactions took place: Purchases Sales Cost per Price per...

TB Problem 6-195 (Algo) Two different companies,... Two different companies, Vogel Corporation and Hatcher Corporation, entered into the following inventory transactions during December. Both...

6 BFA303 Auditing 23. a. b. c. a. Planning an audit of a financial report requires that an auditor plan their audit to reduce audit risk to an acceptably low level. Audit risk can be defined as: The...

Which of the following statements about materiality is incorrect? Materiality is a key auditing concept that is assessed during the risk assessment phase of every audit. Information is considered...

When evaluating sample test results, which of the following statements is incorrect? an auditor will not consider whether the population was stratified before being sampled if an error is unique it...

4. Which of the following statements about materiality is incorrect? a. Materiality is a key auditing concept that is assessed during the risk assessment phase of every audit. b. Information is...

Which of the following statements about materiality is incorrect? a. The preliminary assessment of materiality guides audit planning and testing. b. Materiality is a key auditing concept that is...

When gaining an understanding of a client, the auditor will consider the risks associated with information technology. Risks associated with information technology include unauthorized access to...

Which of the following statements about materiality is incorrect? the preliminary assessment of materiality guides audit planning and testing materiality is used to guide the validity of information...

Internal Rate of Return It is sometimes stated that the internal rate of return approach assumes reinvestment of the intermediate cash flows at the internal rate of return. Is this claim correct? To...

Under Article 2 of the UCC and the United Nations Convention for the International Sale of Goods (CISG), absent specific terms in an international sales shipment contract, when will risk of loss pass...

A generation ago many HR people were more Ike, than managers of human capital. a . financial managers b . policemen c . marketers d . salespersons

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

Reflection: Make a list of some of these CoPs. What kind of role do you play? Are you a core group member with a central role in establishing or sustaining the CoP? An active member who regularly...

Thinking about your own work experiences, what examples of emotional, epistemological and organisational containment can you identify?

Creative writing exercise (Each section about five minutes): Considering each of these CoPs, imagine where they would be set if they were a play, book or film. The family home in a domestic drama?...