CONTENTS

PREFACE

AUTHORITY STATEMENT

Paragraphs

Application.................................. 1-2

Operative Date................................ 3

Introduction.................................. 4-7

Materiality in the Context of an Audit................. 8-9

Preliminary Assessments of Materiality................ 10-16

Quantitative Factors............................ 17-19

Qualitative Factors............................. 20-22

Materiality and Audit Risk in Evaluating Audit Evidence.... 23-26

Evaluating the Effect of Uncorrected Misstatements....... 27

Individual Misstatements......................... 28-30

Aggregated Misstatements........................ 31-33

Reporting Responsibilities........................ 34

Management Representations...................... 35

Communication with Those Charged with Governance...... 36

Conformity with International Standards on Auditing...... 37