In ques 1 there must be 1 materiality paragraph on suitable figure like revenue pbt total assets given by examiner.
Now for Ronn should i be calculating materialty again or keep referencing bak to my materility paragraph.
Also if a question is worth 21 marks then is 6 Audit risk 4 materiality calculation 2 trends enough?
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Materiality
3y ago#1See for example in the answer to Practice Exam Q1 Pale Co in the CBE Platform ... the evaluation of risks starts with an overall assessment of materiality.
Thereafter, the "consistent application of the chosen materiality" (which gets professional skills marks) is demonstrated like this:
"A government grant of $20 million has been awarded to Pale Co, this is significantly above the materiality threshold which has been determined at $1.25million ..."
"The company’s timber plantation asset, prior to recognising any change in fair value, is highly material based on the threshold calculated of $1.25million ..."
YES it is enough!
Ohkay sir...Perfect..
3y ago#3You are very welcome!
(By the way, I'm not a Sir, I'm a Ms or a Ma'am if you're not comfortable with simply "Kim".)
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