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Qualitative Materiality In Government Audit Planning, Sridhar Ramamoorti, Andrea Lee Hoey
Qualitative Materiality In Government Audit Planning, Sridhar Ramamoorti, Andrea Lee Hoey
Accounting Faculty Publications
The political sensitivity of the area under audit to adverse media exposure and litigation concerns the nature rather than the size of an amount, such as illegal acts, bribery and corruption, related party transactions, snowballing patterns of error and other risks that grow over time. Qualitative materiality considerations should not be ignored-they can and frequently do influence the nature and scope of governmental audits. Financial Accounting Standards Board Concepts Statement No. 2 defines materiality as the magnitude of an omission or misstatement that would influence the decisions of a user of financial statements. Audit planning needs to incorporate considerations of …