GuestMateriality
Source: SA 320, Materiality in Planning and Performing an Audit (summary)
Misstatements are material if they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Materiality is a matter of judgement and depends on both the size and the nature of the item.
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About Audit
Auditing ideas every student meets early: what makes evidence sufficient and appropriate, why an auditor keeps professional scepticism, and how materiality guides planning under SA 320.