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Chapter 9

Planning, materiality and assessing the

risk of material misstatement

Outcome

By the end of this session you should be able to:

 define materiality and performance materiality and demonstrate how it should
be applied in financial reporting and auditing

 identify and explain business risks for a given assignment

 identify and explain audit risks for a given assignment

 identify and explain risks of material misstatement for a given assignment

 discuss and demonstrate the use of analytical procedures in the planning of an
assignment

 explain how the result of planning procedures determines the relevant audit
strategy

 explain the planning procedures specific to an initial audit engagement

 identify additional information that may be required to assist the auditor in
obtaining an understanding of the entity

 recognise matters that are not relevant to the planning of an assignment

and answer questions relating to these areas.

The underpinning detail for this chapter in your Integrated Workbook can
be found in Chapter 9 of your Study Text

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