May 2021 Q1 c.
Materiality is a fundamental concept in both auditing and accounting.
Framework for the preparation of financial statement states that Information is material if its omission, misstatement or non-disclosure could influence economic decisions of users taken based on the financial statements.
Required:
State TWO (2) instances which require the Auditor to apply the concept of materiality. (2 marks)
View Solution
- When planning and performing the audit.
- During the testing of items in the course of the audit
- When evaluating the effects of misstatements on the financial statements and therefore on his audit opinion.