#11 Materiality

Question 1

Materiality determined by auditor

Answer 1

In the Integrated audit, the auditor expresses opinions on both the fairness of the financial statements and the effectiveness of the internal control over financial reporting(ICFR). During the planning process, the auditor determines what amount of error( measure of materiality) can occur without negatively affecting decisions based on the financial statements or the audit report. Measure of materiality must be the same for tests of both the financial statements and the effectiveness of ICFR.