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November 20, 2014 at 8:39 pm
Thanks dear it is clear now
May 16, 2014 at 1:02 pm
Materiality, An auditor should have skills of professional judgement that he/she can set the points of materiality. Because every organisation is not of the same type. So it all depends on Inherent & control risk of an entity & depends on the nature & type of an entity.
October 14, 2012 at 3:50 pm
please help…i can’t undrestand what this sentence means “the higher the anticipated risk, the lower the value of materiality will be”…thanks i advance
September 5, 2013 at 6:16 pm
It means that if auditors think there is high risk in this entity, they will set a lower level of materiality! Why? Because materiality is the level which you have to investigate any errors above it, if materiality is 5000 and there is a misstatement of 6000, then you have to investigate that as it goes above materiality, having said that, if you think about it, the lower the level of the materiality the more work you will have to do and the more investigations you will carry on because many errors will easily exceed the level of materiality as it is of a lower level, which does make sense that you should investigate more in the case of anticipating high risk.
Hope that helped!
September 27, 2013 at 5:26 am
September 27, 2013 at 6:26 am
My pleasure! 🙂
April 18, 2014 at 1:00 pm
Great, Thank you for explaination Maha 🙂
June 11, 2012 at 7:27 am
February 20, 2012 at 4:11 am
no words to thank….. really benefited..
November 20, 2011 at 11:00 am
awsum explanation of materiality…. long live opentuition.com…..
October 25, 2011 at 3:36 pm
thank you so much:)
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