Interested to Buy Any Domain ? << Click Here >> for more details...
Is materiality by fund balance or transactions?
- 1 Answers
- 5024 Views
- I also Faced
- E-Mail Answers
Answer / chalapathi rao govada
As per AAS -13, the term materiality is a relevent concept
which means it will depends on terms and conditions of the
situation.
Materiality ref to The transaction which can influence the
decisions of users of financial statements.
So what is material in one situation may not be material in
another situation.
So some transactions may be material if the amount involved
in such transaction is material.
Even though one particular transaction is also material
eventhough it doesnt involve a small fund balance depending
on the nature of such transaction and the the manner in
which it is going to influence the decisions of users of
financial statements.
So depending on the facts and circumstances of the
transaction even a single transaction may be material.
One transaction may not be material singly, but it is
material in aggreage with other transactions.
So the auditor should excercise his professional judgement
to decide the materiality considering the facts and
circumstances of eacha and every transactins.
| Is This Answer Correct ? | 5 Yes | 0 No |
what should we do in case of a Partnership wen the Partners capital account has debit balance???
Does anyone work for the CA state as an Auditor? I am a new college graduate and I need some tips on what questions I will be asked during the interview for the Auditor 1 position. Can anyone help?
How will u handle accounts receivable?
20 Answers Ask Agro Chemicals, Genpact, State Bank Of India SBI, Wipro,
How many types of Audit?
Expand---------PRSM
NAME OF FOUR TYPES OF ERRORS?
Why should we have three Accounting Principles(personal, real & nominal) instead of one
different between income accrued and income receivables
what is a turn over ratio?
5 Answers SA Engineering, SSC,
What duty to auditors and independent examiner have to report problems to the Commission ?
I Have MBA in Finance and staying at Ameerpet. Please help me in findinag a best institute to learn tally near to Ameerpet.
secretarial audit
Audit 
