Difference between not trivial and not material

This topic has 3 replies, 2 voices, and was last updated 11 years ago by MikeLittle.

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February 20, 2015 at 9:39 am #229300
questforknowledge
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Hello Mike
i was reading my text and i came across this expression, The principal auditor should set a threshold where a misstatement should be considered to be not trivial and further it says not trivial is different from not material.
i am not quite clear with the expressions
February 20, 2015 at 5:08 pm #229343
MikeLittle
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Interesting this, and I’m not myself 100% certain, but here’s a guess.

Items may be trivial but not material in themselves. But it’s possible that a number of trivial matters could combine to make a material adjustment

Does that sound reasonable?
February 23, 2015 at 8:45 am #229755
questforknowledge
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its obvious that an item which is trivial will not be material but can something be trivial and be material i dont think so unless so many of such trivial items combine as you put it. what i think is that when something is trivial its obvious that it is immaterial
February 23, 2015 at 9:06 am #229761
MikeLittle
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Well, yes, but that hasn’t really got us much further down the road to understanding

“If something is trivial it’s obvious that it is immaterial” is like saying that if it’s got 4 legs then it’s an animal (unless it’s a table!)
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