Ipcc audit query

Dear Ritika,

Refer the Link attached herewith...

Regards,

RAJESH CHOUDHARY

Materiality basically means level of misstatements that u can tolerate in any financial statments.

Any misstatement above the level of materiality can effect the Financials. The materiality level is decided at the planning stage by the Senior audit Staffs.

materiality is the importance level of any transaction or any item in the financial statements.say if its salary,its a big expense for any organisation.so it will be disclosed separately.moreover,as an auditor you will also be checking it well given its importance.so the risk of missing any fraud or misstatement in such transactions will be very low.while for immaterial items that are clubbed under miscellaneous,there are high chances that the management may be trying to conceal something in this head.so the level of risk is higher.