Materiality

Question 1

overall materiality

Answer 1

probably influences judgment of users

Question 2

performance materiality

Answer 2

reduce probability that aggregate of uncorrected and undetected misstatements exceeds materiality (<materiality)

Question 3

clearly trivial

Answer 3

clearly inconsequential, whether taken individually/aggregate and whether judged by any criteria

Question 4

materiality

Answer 4

the magnitude of an omission or misstatement of accounting information that makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced (user approach)

Question 5

financial materiality

Answer 5

triggers financial effects that likely affect future cash flows not captured by financial reporting at reporting date

Question 6

impact materiality

Answer 6

connected to actual or potential significant impacts on people or environment - including linked to the value chain - not only contract related

Question 7

tolerable error

Answer 7

maximum monetary error in the related account balance or class of transactions that may exist without causing the financial statements to be materially misstated

Question 8

tolerable error effected by

Answer 8

• cost of procedures
• variability in the balance