ISA 320 – NBC Institute

AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards

Determining criteria for immaterial information based on ISA 320.

Question

According to ISA 320, the auditor is expected to treat information as IMMATERIAL if:

A. Its omission could influence the economic decision of users based on the financial statement
B. Its misstatement could alter the decision of stakeholders based on the financial statements
C. Its omission is within the audit objective
D. Its misstatement will make an audit objective to be defeated
E. Its omission threatens the going concern of the organisation

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Standards, Financial Statements, Immaterial Information, ISA 320, Materiality
Level: Level 3

Topic: Regulatory Framework and Professional Standards
Series: NOV 2012

AA – Nov 2018 – L2 – Q3 – Planning an Audit

Explains materiality in accordance with ISA 320 and addresses steps for materiality and receivable circularization in an audit.

Question

Holy Family Limited is a trading company that deals in furniture. The company is a major distributor to Happy Couples Limited that manufactures the furniture. The turnover of the company as at December 31, 2017, was ₦120,000,000. Also, in the statement of financial position is a figure of ₦2,500,000 that represents trade receivables. The auditor informs the Managing Director of the need to circularize the debtors. The Managing Director feels indifferent to circularization, saying that the figure of ₦2,500,000 is not material with a turnover of ₦120,000,000.

Required:
a. As an auditor, explain to the Managing Director the concept of materiality in accordance with ISA 320.
(5 Marks)

b. State the steps you are expected to take as regards materiality when planning and performing an audit.
(5 Marks)

c. Explain to him why you should confirm receivable balances through circularization.
(3 Marks)

d. If you decide to circularize only a sample of receivables, list the types of accounts that should not be overlooked in selecting the sample.
(7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, Circularization, ISA 320, Materiality, Receivables
Level: Level 2

Topic: Audit Sampling and Other Selective Testing Procedures, Planning an Audit
Series: NOV 2018

AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements

Definition of materiality and how its level is assessed during audit planning.

Question

ISA 320 Materiality in Planning and Performing an Audit provides guidance on the concept of materiality in planning and performing an audit.

Required:
Define materiality and determine how the level of materiality is assessed.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Materiality, Audit Planning, ISA 320, Misstatements
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2017

AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap

Define the concept of materiality in the context of an audit.

Question

ISA 320: Materiality in Planning and Performing an Audit explains the concept of materiality and how it is used by the auditor in engagement to reach important conclusions regarding procedures and evidence obtained. The concept of materiality is a core concept in risk-based audit approaches.

Required:
i) Explain materiality. (2 marks)

ii) Briefly assess FOUR (4) ways materiality impacts an audit. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, ISA 320, Materiality, Risk of Misstatement
Level: Level 2

Topic: Audit Failure and Expectation Gap
Series: MAY 2020

AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards

Determining criteria for immaterial information based on ISA 320.

Question

According to ISA 320, the auditor is expected to treat information as IMMATERIAL if:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Standards, Financial Statements, Immaterial Information, ISA 320, Materiality
Level: Level 3

Topic: Regulatory Framework and Professional Standards
Series: NOV 2012

AA – Nov 2018 – L2 – Q3 – Planning an Audit

Explains materiality in accordance with ISA 320 and addresses steps for materiality and receivable circularization in an audit.

Question

Required:
a. As an auditor, explain to the Managing Director the concept of materiality in accordance with ISA 320.
(5 Marks)

b. State the steps you are expected to take as regards materiality when planning and performing an audit.
(5 Marks)

c. Explain to him why you should confirm receivable balances through circularization.
(3 Marks)

d. If you decide to circularize only a sample of receivables, list the types of accounts that should not be overlooked in selecting the sample.
(7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, Circularization, ISA 320, Materiality, Receivables
Level: Level 2

Topic: Audit Sampling and Other Selective Testing Procedures, Planning an Audit
Series: NOV 2018

AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements

Definition of materiality and how its level is assessed during audit planning.

Question

ISA 320 Materiality in Planning and Performing an Audit provides guidance on the concept of materiality in planning and performing an audit.

Required:
Define materiality and determine how the level of materiality is assessed.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Materiality, Audit Planning, ISA 320, Misstatements
Level: Level 2

Topic: Planning and Approach for Audit and Assurance Engagements
Series: MAY 2017

AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap

Define the concept of materiality in the context of an audit.

Question

Required:
i) Explain materiality. (2 marks)

ii) Briefly assess FOUR (4) ways materiality impacts an audit. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, ISA 320, Materiality, Risk of Misstatement
Level: Level 2

Topic: Audit Failure and Expectation Gap
Series: MAY 2020

Question Tag: ISA 320

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards

Determining criteria for immaterial information based on ISA 320.

AA – Nov 2018 – L2 – Q3 – Planning an Audit

Explains materiality in accordance with ISA 320 and addresses steps for materiality and receivable circularization in an audit.

AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements

Definition of materiality and how its level is assessed during audit planning.

AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap

Define the concept of materiality in the context of an audit.

AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards

Determining criteria for immaterial information based on ISA 320.

AA – Nov 2018 – L2 – Q3 – Planning an Audit

Explains materiality in accordance with ISA 320 and addresses steps for materiality and receivable circularization in an audit.

AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements

Definition of materiality and how its level is assessed during audit planning.

AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap

Define the concept of materiality in the context of an audit.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: ISA 320

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards

Determining criteria for immaterial information based on ISA 320.

You're reporting an error for "AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards"

AA – Nov 2018 – L2 – Q3 – Planning an Audit

Explains materiality in accordance with ISA 320 and addresses steps for materiality and receivable circularization in an audit.

You're reporting an error for "AA – Nov 2018 – L2 – Q3 – Planning an Audit"

AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements

Definition of materiality and how its level is assessed during audit planning.

You're reporting an error for "AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements"

AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap

Define the concept of materiality in the context of an audit.

You're reporting an error for "AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap"

AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards

Determining criteria for immaterial information based on ISA 320.

You're reporting an error for "AAA – Nov 2012 – L3 – SA – Q14 – Regulatory Framework and Professional Standards"

AA – Nov 2018 – L2 – Q3 – Planning an Audit

Explains materiality in accordance with ISA 320 and addresses steps for materiality and receivable circularization in an audit.

You're reporting an error for "AA – Nov 2018 – L2 – Q3 – Planning an Audit"

AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements

Definition of materiality and how its level is assessed during audit planning.

You're reporting an error for "AA – May 2017 – L2 – Q3b – Planning and Approach for Audit and Assurance Engagements"

AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap

Define the concept of materiality in the context of an audit.

You're reporting an error for "AA – May 2020 – L2 – Q2a – Audit Failure and Expectation Gap"

Our offerings

Contact Info

Customer

Get In Touch

admin