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Materiality

This topic has 1 reply, 2 voices, and was last updated 2 weeks ago by Kim Smith.

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March 4, 2023 at 10:24 am #680095
tmz32
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In q1 if you are required to base materiality on % of PBT should you base figures against PBT on q2 & 3 or can you choose to use % of revenue and assets?
Thanks
March 4, 2023 at 12:55 pm #680107
Kim Smith
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In Q1 you should do as instructed. You shouldn’t assume it will always be PBT. In other Qs e.g. “completion stage” you should assess a misstatement against a relevant benchmark i.e. not again revenue unless revenue is affected.
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