Page 14 - PowerPoint Presentation

IMPORTANT ELEMENTS OF THE AUDIT PROCESS

PLANNING MATERIALITY AND PERFORMANCE MATERIALITY

• Per ISA 320, the concept of materiality is applied at the

planning stage of the audit (planning materiality),

during the performance of an audit (performance

materiality) and at the evaluation state of the audit

(final materiality).

• Planning Materiality – set at the onset when the

auditor makes judgements about the size of

misstatements that will be considered material. Will

assist the auditor to;

• Determine the nature, timing and extent of risk assessment

procedures

• Identifying and assessing the risk of material misstatements

• Determining the nature, timing and extent of further audit
procedures.

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