How can we help?

You can also find more resources in our Help Center.

Chapter 9

Materiality and Risk
STUDY
PLAY
Materiality
The magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgement of a reasonable person relying on the information would have changed or influenced by the omission or misstatement.
control risk
measures the auditor's assessment of the likelihood that there are material misstatements (errors or fraud) in a segment before considering the of internal control.
formula
IR X CR/AAR = W