Although materiality is ultimately a matter of professional judgment, two types of criteria are taken into...

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Accounting

Although materiality is ultimately a matter of professionaljudgment, two types of criteria are taken into consideration whendetermining materiality thresholds. Provide the two types ofcriteria

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Ans Materiality is considered as a key concept in the theory and practice of accounting and auduting It is a significant factor in the planning of the audit procedures performing the panned audit procedures evaluating the results of the audit procedures and issuing an audit report The American Institute of certifies Public accountantsAICPA and the International Auditing and Assurance standards BoardIAASBvpointed out that the auditors determination of materiality is a matter of professional judgement The concept of materiality is directly linked to the decission making requirements of financial statement users Materiality has been defined by the Financial Accounting Standards Board in statement of Accounting concepts Qualitative characteristics of Accounting Information as follows The omission or See Answer

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Although materiality is ultimately a matter of professional judgment, two types of criteria are taken into...

50.1K

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Question

Accounting

Although materiality is ultimately a matter of professionaljudgment, two types of criteria are taken into consideration whendetermining materiality thresholds. Provide the two types ofcriteria

Answer & Explanation Solved by verified expert

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