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can you help me understand this:
1. if a misstatement is detected which is below the materiality limit ,can it be ignored?
2.An immaterial account balance cannot attract audit risk. is this true?
1 The auditor has to be sure that there are not several small errors eg in different expenses adding up to a large one. If there is only one immaterial error, the auditors would ask for it to be corrected (why not get things as right as possible?) but if it were not corrected it would not cause a modified opinion.
2 Not necessarily. An immaterial payables amount might be immaterial only because a large payable had been excluded.
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