ISA 320 — Materiality in Planning and Performing an Audit
ISA 320 is an international pronouncement addressing the auditor’s use of materiality and performance materiality. It addresses materiality and performance materiality in planning and performing an audit, including revision when new information makes that appropriate. Materiality does not replace consideration of qualitative features or the aggregate effect of misstatements.
Worked example
The auditor sets materiality using a benchmark and revisits it if actual results differ substantially from expectations.
Common mistake
Do not ignore a qualitatively material item solely because its amount is below a numerical threshold.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |