Materiality level

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May 20, 2017 at 8:48 am #387086
seville
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Hello,

Do we need to increase or decrease materiality if a sales-related bonus scheme has been introduced?

Thank you.
May 20, 2017 at 12:30 pm #387108
Ken Garrett
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You would look more closely at sales where there is now a risk of overstatement because managers want high bonuses.

You would decrease the materiality level to increase the chances of findimg smaller errors or being concerned about smaller errors.
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