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Hey,
Can you please help whether we have to use the same percentages (revenue/assets/PBIT) as for materiality to decide whether a sub. is significant component of the group?
Thanks a lot!
This is from a July 2011 issue from ACCA published in Accounting and Business magazine
https://www.accaglobal.com/in/en/member/discover/cpd-articles/audit-assurance/group-audits.html
“The group audit team should also determine component materiality for those components where component auditors will perform an audit or a review for the purposes of the group audit. Component materiality is set at a lower level than group materiality and can be set at different levels for different components”
I cannot see anywhere any reference to percentages but that’s only to be expected … they are, after all, only to be used as a guide
Here’s a link to an article from last month – I believe that it was in Student Accountant – that is probably worth a read
OK?
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