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if the percentage of an item is obove maeriality threasholds

This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.

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June 4, 2014 at 5:39 pm #173848
kontoua
Member
- Topics: 15
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materiality
PBIT 5% -10 %
revenue 0.5%-1%
total assets 1%-2%
if the percentage that i calculate i above those thresholds what does it mean?
June 4, 2014 at 8:06 pm #173956
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
It means that it’s CERTAINLY material!
That could lead on to further work, a drop in materiality amounts, indication of a break-down in accounting / internal controls, fraud or other irregularity, increase in the already healthy degree of professional skepticism
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