Planning Materiality
- Topics:
- Audits
- Tags:
- Aggregation,
- Auditing,
- Finance,
- Financial,
- Financial Accounting,
- Financial Planning,
- Financial Statement,
- Financial Statements,
- Misstatement
FREE Registration is required
Overview: Planning materiality is concerned with whether a misstatement, or an aggregation of misstatements, in a financial statement item or an underlying account balance or class of transaction, is likely to result in a material misstatement in the financial statements as a whole. Auditors use planning materiality to determine which items to examine in the various levels of aggregation (i.e. financial statement, account balance and transaction levels). Auditors select for examination those financial statement items, account balances or transactions that equal or exceed the value of planning materiality for the particular level of aggregation. This article presents an auditing approach to planning materiality.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Jan 2003 | Pages: 1
