What is materiality in an audit context?
- A Information is material if omitting or misstating it could influence users' economic decisions
- B Any amount above one lakh
- C Only balance sheet items
- D Amounts specified by the client
Answer
Information is material if omitting or misstating it could influence users' economic decisions
Materiality is judged by both size and nature. A small amount involving fraud or related parties can be material by nature alone.





