- This topic has 5 replies, 2 voices, and was last updated 6 years ago by
.
- Posts
hi,
i notice that in the marking scheme, the materiality calculation is capped at 4 marks with 1 each.
What happens if i calculate materiality, and if that calculation doesn’t appear on the answer sheet, Does it mean, that particular materiality calculation i have done won’t get 1 mark ?
All relevant answer points will be given credit (up to any maximum). If you are making different calculations you have to ask yourself it they are relevant.
For example – if the misstatement is crediting a gain to revenue instead of other income (or netting it off against an expense) – this does not affect profit or total assets – only % revenue is relevant.You have mentioned relevant. That means we must use the correct base such as revnue, total assets and profit before tax ?
So for example if impairment, we can either use total assets amount and profit before tax amount correct ?
Yes – only calculations which are relevant to the assessment of materiality will be awarded marks. The example you give is a good one (i.e. % revenue would be irrelevant).
- You must be logged in to reply to this topic.