Materiality Flashcards
1
Q
What is materiality?
A
Guidelines for acceptable margins for errors
2
Q
What criteria should be considered for materiality?
A
Consistency with those applied by management as well as the auditor
3
Q
What factors should be taken into account when considering materiality? (4)
A
M - manner in which the uncertainty of the results is to be communicated
A - always consider : PURPOSE for which the estimates are required
T - the cumulative impact of items disregarded due to immateriality
E - estimates : Statistical significance of the estimates
R -
I -
A -
L -
I -
T -
Y -
