What factors go into making a materiality judgement?
What factors go into making a materiality judgement?
Solutions
Expert Solution
answer:
materiality ought to be considered by the arranging and
assessing the outcome, admirably set up a quantitative sum for
materiality amid the arranging stage.
it might think about the accompanying variables to assign
arranging materiality:
the expense of gathering proof for a spastics for record
the ability of confirmations bailable for a specific
record.
expected sim proclamation,
size of record adjusts, and
pertinence of the record adjusts to client choices.
The relationship between PDR and materiality
What tolerable misstatement is
Factors that affect the IR
Allocating materiality to segments or accounts
Qualitative factors that affect materiality levels
who is responsible for establishing a private company’s
internal control
what is fraud, what are its different types
What are the likely sources of information to assess fraud
risks
Please discuss materiality. What is materiality and why is it
important for auditing? What are the qualitative and quantitative
factors that determine materiality?
What important factors, in addition to quantitative factors,
should a firm consider when it is making a capital structure
decision? How do these factors play in the decision? Be sure to
support your ideas with examples from your own experience or other
firms or sources.
The concept of professional judgement-making informed decisions
about course of action that are appropriate in the
circumstances-underpins the accounting profession. Discuss how
heuristics/biases and culture can influence accountants. decision
making with reference to specific judgements that are typically
made by accountants.