Dear Sir, Thank you for your lectures. I learned from this video how to assess inherent risks in auditing procedures. You have really made it easy for me to understand.
Thank you Charles! great video!, quick question, when we are looking at the material amount in the financial statement, i.e. $100K materiality, are we looking at performance materiality or overall materiality? Thank you!
Performance materiality it used in planning your audit procedures for an account balance or transaction cycle. So, if materiality is $100,000 then your performance might be $75,000. Then you plan audit procedures for an area (e.g., cash) such that no more than $75,000 in error can occur without you detecting it.
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Crisp and clear...😊
This is so incredibly helpful. Thank you for breaking it down.
Glad it was helpful!
Dear Sir, Thank you for your lectures. I learned from this video how to assess inherent risks in auditing procedures. You have really made it easy for me to understand.
Glad to hear.
Thank you Charles! great video!, quick question, when we are looking at the material amount in the financial statement, i.e. $100K materiality, are we looking at performance materiality or overall materiality? Thank you!
Performance materiality it used in planning your audit procedures for an account balance or transaction cycle. So, if materiality is $100,000 then your performance might be $75,000. Then you plan audit procedures for an area (e.g., cash) such that no more than $75,000 in error can occur without you detecting it.