Taking the wraps off materiality

Materiality is an important concept in auditing. The point of an audit is to certify the financial statements as being free of material misstatement. A material misstatement is one which would affect the decisions of a user of those statements. This recent blog post at the VeraSage Institute, more known for their pioneering work in […]

Materiality in auditing

Materiality is a concept in auditing that attempts to set a dollar value guideline for the scope of evidence testing at the substantive level, analytical procedures, and to a lesser extent, controls testing. According to Krupo: “Materiality is the smallest misstatement of a company’s finances that would cause a person to change how they value […]