Page 15 - PowerPoint Presentation
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IMPORTANT ELEMENTS OF THE AUDIT PROCESS
SETTING MATERIALITY LEVELS
• Involves quantifying the amount of misstatements
the auditor will be able to “live with”.
• Thereafter, materiality is considered at the FSLI
level, and this is what determines the tests
performed.
• Setting materiality for FSLIs is very subjective and
requires significant professional judgement.
• Audit firms have different ways of approaching this
but the principles remain the same.
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CharterQuest
