ISA 320 (3) Flashcards
1
Q
Potential risk for balances?
A
A number of balances are untested or dismissed on grounds they are immaterial
2
Q
What could be the case for balances?
A
A numbers of errors or misstatements could exist in those untested balances, and these could aggregate to a material misstatement
3
Q
What is the auditor required to do to resolve this risk
A
To set performance materiality level which are lower than the materiality for the FS as a whole
4
Q
To set performance materiality level which are lower than the materiality for the FS as a whole menaing
A
A lower threshold is applied during testing
5
Q
A lower threshold is applied during testing reduces
A
The risk of misstatements which could up to a material misstatement
