ISA 320 (3) Flashcards
Potential risk for balances?
A number of balances are untested or dismissed on grounds they are immaterial
What could be the case for balances?
A numbers of errors or misstatements could exist in those untested balances, and these could aggregate to a material misstatement
What is the auditor required to do to resolve this risk
To set performance materiality level which are lower than the materiality for the FS as a whole
To set performance materiality level which are lower than the materiality for the FS as a whole menaing
A lower threshold is applied during testing
A lower threshold is applied during testing reduces
The risk of misstatements which could up to a material misstatement