In the sep/DEC 20 question 3d. When you calculated the size you had 2.3% and you said it was material but I remember in the notes the materiality guide for assets was 1% - 2%. So since it is over 2% why is it material
Ask the Tutor ACCA AA
Audit opinion
3y ago#1Greater than the upper end of the benchmark - 2% - is material.
Less than the lower end of the benchmark - 1% - is not material.
In between is a "grey area" that may or may not be material in the circumstances. In AA, if it matters, the % will always be "clear cut".
Sign into reply to this topic.