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hello, i wonder what is difference between performance materiality and tolarable error in term of application in audit process? thanks
“Auditors may confuse performance materiality with tolerable misstatement. Tolerable
misstatement is referred to in ISA 530 Audit sampling and is an example of performance
materiality when applied to the selection and evaluation of results when sampling.
However, performance materiality is also used for other things at the planning stage. It
is also a reference point when evaluating the results of other (non-sampling) substantive
analytical procedures.”Source: ICAEW Materiality in the audit of financial statements
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