Explain the concept of materiality and the rules of thumb

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Reference no: EM133062843

Question 1. Select a well-known company you are familiar with. What are three things that would be important to bear in mind when planning the audit? Consider such items as the location of major operations; current levels of profitability and important (or unusual) account balances.

Question 2. Gay & Simnett, Question 5.18 (p. 224) [Frame your response around the impact on the overall audit plan]

Question 3. Explain the concept of materiality and the rules of thumb used by an auditor to quantitatively assess materiality. Considering your example from question (1), what items might be material due to their nature, regardless of their amount?

Question 4. Consider the company you have selected in question 1 from a sustainability point of view. If the company was to prepare a sustainability report, what aspects would be most important to shareholders and other stakeholders?

Reference no: EM133062843

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