Page 19 - PowerPoint Presentation

IMPORTANT ELEMENTS OF THE AUDIT PROCESS

REVISION OF PLANNING AND PERFORMANCE

MATERIALITY LEVELS

• Planning and performance materiality can be revised

since it is based on the auditor’s initial understanding

of the entity. It is the auditor’s “estimate”.

• Will change as a result of new info gathered and as

the audit progresses.

• In practice, preliminary judgements about materiality

may be based upon preliminary or draft figures. The

auditor will need to consider whether planning

materiality will need to be adjusted if final figures

differ substantially from the draft figures.

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