Question 3a
Marking Guide
up to 1 mark per well explained point: | |
| – materiality for financial statements as a whole and also performance materiality levels | |
| – definition of materiality | |
| – amount or nature of misstatements, or both | |
| – 5% profit before tax or 1% revenue or total expenses | |
| – judgement, needs of users and level of risk | |
| – small errors aggregated | |
| – performance materiality | |
| max marks | 5 |