What is the concept of ‘Materiality’, and how is it applied in an Audit?
The word “materiality” basically means how important or significant something is in relation to the financial statements as a whole. ISA 320 Materiality in Planning and Performing an Audit says [defines] the following about the term: ‘A matter is material if its omission or misstatement would reasonably influence the economic decisions of users taken on […]
