ACCA Advanced Audit and Assurance

ACCA Advanced Audit and Assurance Define materiality - Answer- Matters are material if their omission or misstatement could influence the economic decisions of users of the financial statements. What are the materiality benchmarks? - Answer- - Above 1⁄2- 1% of revenue - Above 1 - 2% of total assets - Above 5 - 10% of profit before tax Define performance materiality - Answer- This is an amount set by the auditor that is less than the overall materiality threshold. Its purpose is t...

ACCA Advanced Audit and Assurance (UK) The need for assurance services - Answer-Assurance professionals provide reports that give an independent opinion as to whether the subject matter complies with pre-determined criteria. This enables the end user of that information to place more or less reliance on that information when making decisions Decision makers within financial markets need to have the confidence to make informed decisions The need for regulation - Answer-Business failures,...