what is audit materiaity?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Sindhura G S asked almost 2 years ago

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4 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 2 years ago

**AUDIR MATERIALITY** Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework such as Generally Accepted Accounting Principles (GAAP). Thanks

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Kuldeep Dhamecha answered almost 2 years ago

misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users made on the basis of the financial statements.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Sankar answered almost 2 years ago

Materiality is an item of financial statements whose misstatement would influence the decision of users of financial statements. Audit materiality is an item, whose misstatement would influence the decision of users of financial statements. It is very subjective concept and changes from entity to entity, it can be decided on the basis of account balance, class of transactions and disclosures.

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered almost 2 years ago

**Materiality** is the threshold above which missing or incorrect information in financial statements is considered to have an impact on the decision making of users.

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