Auditing Standard No. 11

Auditing Standard No. 11 Consideration of Materiality in Planning and Performing an Audit The fact is substantial if thither is a substantial likelihood that the fact would have been viewed by the commonsense investor as having significantly altered the total mix of information do available. To start reasonable assurance about whether the financial statements are indigent of material misstatement, the attendee should plan and perform audit procedures to fall upon misstatements. To plan the nature, timing, and extent of audit procedures, the attendee should clear a corporeality level for the financial statements as a social unit and materiality levels for particular accounts or disclosures. The auditor should determine the marrow of bearable misstatement for purposes of assessing risks of material misstatement and planning and playacting audit procedures at the account or disclosure level.

For multiple locations or byplay organization units, the auditor should determine tolerable misstatement for the individual locations or business units at an tot that reduces to an appropriately low level the chance that the total of uncorrected and undetected misstatements would result in material misstatement of the consolidated financial statements. The auditor should re survey the established materiality level and tolerable misstatement when, because of changes in the particular circumstances or additional information that comes to the auditors attention. If the auditors reevaluation results in a lower amount for the materiality level, the auditor should (1) evaluate the effect, if any, of the lower amount on risk assessm! ents and audit procedures and (2) switch the nature, timing, and extent of audit procedures as necessary to obtain sufficient appropriate audit evidence.If you indigence to get a honorable essay, order it on our website: BestEssayCheap.com

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