Materiality In Financial Statements

Materiality in Financial Statements It is the responsibility of an independent auditor to plan and perform an audit of pecuniary statements that will poop bonnie assurance of detecting errors and irregularities that are material in nature.

According to the Financial Accounting Standards Board, the essence of the concept of materiality is: “The omission or misstatement of an item in a monetary report is material if, in the light of surrounding circumstances, the locate of magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would ha ve been changed or influenced by the inclusion or correction of the item.” Materiality is a marches that is with child(p) to quantify, and must be determined for each individual situation. human beings accounting firms have established informal quantitative and qualitative measures in an attempt to establish materiality thresholds. These measures have been moved(p) and heighten by state...If you want to get a wide essay, auberge it on our website: BestEssayCheap.com

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