152 paragraphs found
Materiality is considered in the context of qualitative factors and, when applicable, quantitative factors. The relative importance of qualitative factors and quantitative factors when considering materiality in a particular performance engagement is a …
Qualitative materiality factors may include such things as: the number of persons or entities affected by the subject matter. the interaction between, and relative importance of, various components of the activity when it is made up of multiple …
Quantitative materiality factors relate to the magnitude of variations relative to reported amounts for those aspects of the assurance report, if any, that are: expressed numerically; or otherwise related to numerical values (for example, the number of …
When quantitative factors are applicable, planning the performance engagement solely to detect individually material variations overlooks the fact that the combination of uncorrected and undetected individually immaterial variations may cause the …
Materiality relates to the information covered by the assurance report. Therefore, when the performance engagement covers some, but not all, aspects of the information communicated about an underlying subject matter, materiality is considered in relation …
Concluding on the materiality of the variations identified as a result of the procedures performed requires professional judgement. For example: the identified criteria for a value for money engagement for a hospital’s emergency department may include the …
Obtaining an understanding of the activity and other performance engagement circumstances is an essential part of planning and conducting a performance engagement. That understanding provides the assurance practitioner with a frame of reference for …
In a performance engagement, understanding internal controls relevant to the activity assists the practitioner in identifying the types of variations and factors that affect the risks of material variation. Professional judgment is needed to determine …
When the objective of a performance engagement is to assess the design or implementation of controls over a process (for example, a process for dealing with patients in a hospital emergency room), the assurance practitioner may consider, during the …
When the objective of a performance engagement is to conclude on a specific outcome of a process, controls may not be relevant to that engagement. For example, an assurance engagement may be designed to reach a conclusion regarding whether the time taken …