Materiality can be defined in different ways. If it would be used to define matter, it would mean the quality of matter. For a lot of other concepts, materiality would signify the importance of a certain detail or data of a type of transaction, an amount, or even a discrepancy.
For example, if there are some finances that do not match, the materiality of the discrepancy will be measured. Of course, the root of the problem will also be delved into. There are times when the materiality is enough to make one proof of statement not useful anymore. It is likely that the person that has relayed the information will also be investigated if there are some signs that there were some omitted information.
Materiality s defined as: the magnitude of an omission or misstatement of accounting information that, in light of the surrounding circumstances, makes it probable that the judgement of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.obtain reasonable assurance as used in the adudit report, means that the auditor does not guarantee or insure the fair presentation of the financial statements. there is some risk that the financial statements contain a material misstatement. (lo #9-1)
Answer Anonymously
Copy Link
