Importance of Materiality in Auditing.pdf - 3 FCBM Faculty of Computing and Business Management Cover sheet for submission of Individual assignment 2012

Importance of Materiality in Auditing.pdf - 3 FCBM Faculty...

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3 Faculty of Computing and Business Management Cover sheet for submission of Individual assignment 2012 Student Name: Abdulla Shimaz Student ID: S0864201 Type of assignment: Individual / Group Subject: Audit 2 Due date: Subject code: BBAA4203 Date submitted: 23 rd June 2013 Time: Program: Bachelor of Accounting Batch1 College stamp: Semester: 6 th Trimester Lecture: Ibrahim Aiman DECLARATION I…… Abdulla Shimaz ……………….. here by certify this assignment is my / our own work based on my / our personal study and / or research I/ we have acknowledge all material and source used in the preparation of this assignment. I/ we also certify that the assignment has not been submitted for assessment in any other subject or at any other time in the same subject and that I/we have not copied in part or whole or otherwise plagiarized the work student and / or other person Signed:………………………………… Date:… 23/6/2013 …. Time:…………………. Extension request: Reason for Extension: Extension Date: Extension Approved: Lecture: Signature: Date: Time: Received by:……………… …………………. Signature:…………………………………. Student Name: Date: Time: Student ID: Course Name: Received by: Sign: Assignment: Lecture: College stamp: FCBM
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OPEN UNIVERSITY MALAYSIA FACULTY OF BUSINESS AND MANAGEMENT Course Code: BBAA4203 Course Title: Audit 2 Name: Abdulla Shimaz Student ID Number: S0864201 ID Number: A049960 Email address: [email protected], [email protected] Tutors Name: Ibrahim Aiman Learning Centre: Villa College Trimester: May 2013
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Importance of Materiality in Auditing Assignment on Audit2 BACC-B1, Abdulla Shimaz
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Assignment on Audit2 Done by: Abdulla Shimaz(S0864201) Page 1 of 13 Table of Contents Importance of Materiality in auditing ...................................................................................................... 2 Types of materiality .................................................................................................................................... 4 1. Materiality by Nature ..................................................................................................................... 5 2. Materiality by Value ....................................................................................................................... 5 3. Materiality by context ..................................................................................................................... 6 Importance of Materiality at different stages of audit ............................................................................ 7 1. Importance of materiality during audit planning ........................................................................ 8 2. Importance of materiality during performing stage and evaluating stage: ............................. 10 3. Importance of materiality during reporting: ............................................................................. 11 Summary .................................................................................................................................................... 12 References: ................................................................................................................................................. 13
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Assignment on Audit2 Done by: Abdulla Shimaz(S0864201) Page 2 of 13 Importance of Materiality in auditing As per ISA 320 (2009) the definition of materiality is given as: “Provide a good explanation on the basis of calculating materiality were given. For purposes of the ISAs, performance materiality means the amount or amounts set by the auditor at less than materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole. If applicable, performance materiality also refers to the amount or amounts set by the auditor at less than the materiality level or levels for particular classes of tran sactions, account balances or disclosures.” (ISA320, 2009).
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