- This topic has 1 reply, 2 voices, and was last updated 8 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › materiality
Dear Sir , would you pease help me, the higher the risk, the lower the level of overall materiality, i thought that the higher the risk, the higher the level of overall materiality. because the auditor will judge the level of materiality depending on the nature and amount of misstatement, would you please explain to me?
many thanks
Let’s say the audit risk is low. That might mean that the auditor looks only at purchase transactions over $1,000.
If the audit risk is higher, the auditor woudl want to look at more transactions so woudl reduce the materiality level (level = figure) to perhaps $500.