Question: P329
Answer: P346
On the answer, it says:
The amount of the payment run is $490,000 which represents 6.0% of total liabilities (490/8100) and hence is a material matter.
Can I ask:
I know it would be material matter if it's > 1% revenue/total assets or >5% of PBT.
What is the criteria of material as percentage of total liabilities? I never saw it anywhere.
Could anybody help please? Many thanks. Lily
ACCA Forums
AABPP Mock Exam 3 --- impact on auditor's report
Well, I haven't come across this either... First time hearing this but from what I understand the %for total liabilities should be the same as total assets.
It only makes sense to me this way.
Hope that helps.
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