Download the Utility for Determining Materiality in Excel Sheet
In an audit is a concept or expression that refers to
the importance or significance of an amount, transaction, or
discrepancy that can affect the economic decisions of the users of financial statements. Auditors determine a threshold of materiality to focus their attention on the matters that significantly impact the financial statements
as a whole and to express an opinion on whether the financial statements prepared, in all material respects.
In conformity with an identified financial reporting framework, Materiality depends on the benchmark chosen and a percentage applied to the benchmark value and
It helps the auditor perform testing procedures only on the account balances that are of significance