| Summary: | Materiality is one of the basic and major concepts of auditing. Auditing and Assurance Standard (AAS) (hitherto known as Standard Auditing Practices (SAPs))-13, “Audit Materiality”, states that the concept of materiality recognises that some matters, either individually or in the aggregate, are relatively important for true and fair presentation of the financial information in conformity with recognised accounting policies and practices. There are no sets of rules or prescriptions that may be applied consistently to determine materiality in all circumstances. Materiality is a relative terms.What may be material in one circumstance may not be material in another. The assessment of what is material is a matter of professional judgement and experience of the auditor.In this paper, concept of materiality concept of audit risk, auditor’s consideration of materiality while making an opinion on the financial statements, etc. are discussed in brief. The matters that are to be considered, among other things, by the auditor to decide on materiality are also outlined.
|
|---|