Auditing Standard No. 11

Auditing Standard No. 11 Consideration of Materiality in Planning and Performing an Audit The fact is substantial if there is a substantial likelihood that the fact would have been viewed by the commonsense investor as having significantly altered the total mix of information make available. To start reasonable assurance about whether the financial statements argon indigent of material misstatement, the examineor should plan and perform audit procedures to fall upon misstatements. To plan the nature, timing, and extent of audit procedures, the tender should comprise 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 supportable misstatement for purposes of assessing risks of material misstatement and planning and perform audit procedures at the account or disclosure level. For quadruplicate locations or byplay organization units, the audito r should determine tolerable misstatement for the individual locations or business units at an tot that reduces to an suitably low level the chance that the total of uncorrected and undiscovered misstatements would result in material misstatement of the consolidated financial statements. The auditor should re judge 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 assessments and audit procedures and (2) deepen the nature, timing, and extent of audit procedures as necessary to obtain commensurate appropriate audit evidence.If you indigence to get a encompassing essay, order it on our website: BestEssayCheap.com

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