Andrew, CPA, is filling out a materiality worksheet and wanted more information about what types of benchmarks may be used to determine materiality. Which section of the AICPA professional standards provides examples of benchmarks that may be appropriate to utilize for materiality

Question

Omar Ellison

Business

8 December, 08:58

Andrew, CPA, is filling out a materiality worksheet and wanted more information about what types of benchmarks may be used to determine materiality. Which section of the AICPA professional standards provides examples of benchmarks that may be appropriate to utilize for materiality

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Answers (1)

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Lillie Sheppard · Answer 1

ISA 320. A4

Explanation:

This section includes the factors factors to consider when choosing a benchmark. They incorporate the nature of the entity and the industry of operation, and the focus of users in the financial statements. The appropriate benchmark chosen needs to be in line with the focus of the user.