Auditing: Materiality

This module will enable you to

• Spot common issues found during audit file reviews
• Determine an appropriate level of financial statement materiality
• Understand the process for calculating performance materiality
• Evaluate misstatements in terms of materiality
• Recognise when and how to revise materiality during the audit

About the module

ISA 320 Materiality in Planning and Performing an Audit does not include a definition of materiality, because the principle is a financial reporting concept. Calculating materiality is therefore a matter of judgement for auditors, and it is important to understand how to get it right using some key benchmarks and factors.

This short course examines calculations of financial statement and performance materiality, the relationship between audit risk and materiality and the approach that auditors should take to materiality assessments during an audit.