K2-3: Kingston Company Preliminary Materiality
To: Don Hutton
From: Leslie Nguyen
K2-3: Kingston Company Preliminary Materiality Assessment
a) Describe auditor’s concept of materiality?
Information is material and should be disclosed if it is likely to influence the economic decision of financial statement users. Accounting numbers are not perfectly accurate because of the nature of accounting. • Estimates are used and honest mistake happen.
b) Some relationship and considerations used by auditors when assessing the dollar amount consider material. An accounting estimate is an example of applying materiality to auditing accounting numbers that involve a high degree of management judgement. Small misstatements may be material in some case. Auditors
From: Leslie Nguyen
K2-3: Kingston Company Preliminary Materiality Assessment
a) Describe auditor’s concept of materiality?
Information is material and should be disclosed if it is likely to influence the economic decision of financial statement users. Accounting numbers are not perfectly accurate because of the nature of accounting. • Estimates are used and honest mistake happen.
b) Some relationship and considerations used by auditors when assessing the dollar amount consider material. An accounting estimate is an example of applying materiality to auditing accounting numbers that involve a high degree of management judgement. Small misstatements may be material in some case. Auditors