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Guest
Guest
(Querist)
16 November 2013
Can you please explain the relationship between Materiality and Risk?
17 November 2013
Hi,
There is a inverse relationship b/w materiality and risk,for e.g.
1."X" have saved Rs.100/-, out of that he lost Rs.3/-,now Rs.3/- is not material to him and risk of getting scoldings from his parents is very low.
2."X" have saved Rs.100/-, out of that he lost Rs.90/-,now Rs.90/- is material to X and risk of getting scoldings from his parents is very high.
Hope you understood !!!
There is a inverse relationship b/w materiality and risk,for e.g.
1."X" have saved Rs.100/-, out of that he lost Rs.3/-,now Rs.3/- is not material to him and risk of getting scoldings from his parents is very low.
2."X" have saved Rs.100/-, out of that he lost Rs.90/-,now Rs.90/- is material to X and risk of getting scoldings from his parents is very high.
Hope you understood !!!
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