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Sir kindly explain the diffrence between materiality ad performance materiality please
Ken,In the audit report we need to calculate materiality,So, Do we need to calculate materiality for two items/balances or calculating materiality for one item/balance is enough to achieve one mark…????
You don’t need to calculate materiality for inclusion in the audit report. However, in deciding what type of report to give you have to take materiality into account.
If the question tells you operating profit, turnover and total assets then it is expecting you to work out the three estimates of preliminary materiality. Probably 1 1/2 – 2 marks going for the three of those.
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