Materality in Auditing

Hi Pdhut,

SA-320(earlier AAS-13)issued by ICAI deals with Audit Materiality.

But just for the purpose u can understand Audit Materiality as follows-

Audit Materiality is that characteristic of any item of Financial statement,if item is misstated then this will materially effect the dicisions of users of financial statement.

Any item may be Qualitatively material or Quantitatively material.

If more simply I explain it-

For ex.-U hv Rs.5000 in ur pocket and u go to the market and out of this Rs.5000 u lost in the way Rs.5 then it dosen't effect u more as if u hv just Rs.10 in ur pocket and U lost Rs.5 out of Rs.10.Here in 2nd case Rs.5 is more material for u.I think now u hv understood the concept of Audit materiality.

The above discriptttion is just to clear u this concept but u should write in exam only in the language or manner of ur text book or module.O.K.!

hello,

          I want more information about , difference bitween Indian GAAP & US GAAP.In simple language can someone suggest me plz..