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Hi, is it necessary to show calculation ? for example”asset is overstated by 8%” then do we have to write like a bracket next to it to illustrate how we got 8% ?
In addition, for calculating materiality, it’s not necessary right ? just to confirm
You do not need to show the calculation. If it is complex, you would write it out anyhow, for safety, but for simple things like GP% or materiality workings are not needed.
Hi just to confirm, do we also need to show the calculation for any trend calculation (e.g % increase or decrease from last year) ?
If you assert something is x% and x% is wrong, in the absence of a calculation, you won’t get the mark – if there is a calculation you may get partial credit. So it’s up to you. For increases one year compared with another you probably don’t need – but if you were calculating an average increase over a number of years, it’s probably worth it.
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