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Audit Case Study Materiality
Audit Case Study Materiality
Zineb lyoussi
Mourad seghieri
Amine dou
materiality?
The reason why different materiality bases are considered when determining
planning materiality is because not all the aspects and sections of a financial statement
engagements?
Since the contexts differ from one user to another then the materiality
thresholds will vary depending on the situation the user faced with.
C. Why is the materiality base that results in the smallest threshold generally
detected then no one can assure that the financial statement is free of errors and
misstatement?
two scenarios:
E. Why does the auditor not use the same tolerable misstatement amount or
want to minimize the costs. The following Relationships summarizes the situation:
Not all the misstatements on financial accounts will affect the net income in the
same way since some misstatements might overstate the net income while in the
opposite some financial misstatements will understate net income and consequently
planning materiality?
- Auditors must have expectations of the ending year amounts so that they can