Hi sir, I am wondering whether it means zero tolerance versus materiality. Materiality is where there is a significant or sufficient risk so for example checking for a difference of at least 5% in circumstances of stock is material to know. But with zero tolerance for example if a director of a company is found to steal $500 although this might be well below the 5% level, it is significant.
Forensic audit work (in fact, any forensic work) is specifically checking for errors and an error is an error whether it’s $100,000,000 or $1 – it’s an error
So the concept of materiality and ‘near enough’ doesn’t apply to forensic work
OK?
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