Materiality

Up to 1 mark for each comment:

– Recognise materiality is subjective
– Auditor’s business understanding may change during the audit, making some balances and
transactions material
– Client’s circumstances may change during the audit, making some balances and transactions
more material 
– Adjustments to the accounts mean materiality has to be revised
– Recognise the high-risk status of the client

Maximum marks 4