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When working out materiality what is relevant? All three elements i.e turnover, total assets, profit or one or two of those? If so what is the criteria that determines which is relevant?
As I understand all three can be relevant and determining which is most relevant will be affected by the potential issue. For example lack of control when consolidating group accounts may mean that inter company transactions are not cancelled out and can affect all three. Whereas failure to correctly accrue an audit fee will impact bth profit and total assets.
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