22 July 2011
according to SA 320,audit materiality will be checked by auditor but if users' view of material information is different from auditor' view that means one thing is material according to auditor but by view of user that is immaterial , then What will happen?
Audit materiality is a concept whereby the impact of misstatement is measured in terms of impact of the same on decision making of an informed user of financial statements. An auditor, in view of his/her experience and expertise in auditing, is the best judge to decide what is material and what is not. If an auditor has decided about the materiality on the basis of above basic criteria, then it is immaterial what others think about materiality. Materiality is also a subjective phenomenon which may differ from person to person.
CAclubindia
