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Essay

Materiality Setting

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Issue:

Business

 

Written by:

Kevin T

 

Date added:

February 5, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

16 / 4232

 

Was viewed:

5887 times

 

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Essay content:

In other words, firms would prefer to have their auditors establish similar materiality judgments for clients with similar circumstances. 3-2 The three major steps in applying materiality are: Step 1: Establishing a preliminary judgment about materiality. The auditor establishes a preliminary judgment about materiality by choosing a base, or bases, which is multiplied by a percentage factor to determine the initial quantitative judgment about materiality...
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The auditor establishes a preliminary judgment about materiality by choosing a base, or bases, which is multiplied by a percentage factor to determine the initial quantitative judgment about materiality. This amount can be adjusted for qualitative factors that may be relevant for the engagement. Step 2: Allocating the preliminary judgment about materiality to account balances or classes of transactions...
displayed 300 characters

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