Isa 320 Materiality Analysis

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ISA 320 - Audit Materiality defines the concept as follows: Transactions, items, events will be material in financial statements if their omission, misstatement, misclassification or non-disclosure would distort the view given by the financial statements and would responsibly influence the understanding and economic decisions of users. Materiality, however, is not capable of general mathematical definition since it involves qualitative as well as quantitative considerations For example, materiality can be viewed in terms of size, an item being compared with a transaction or balance class or being compared with the financial statements as a whole (quantitative judgement) It can also be viewed in terms of the nature of an item irrespective

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