Materiality is a complex concept in financial reporting and auditing. ISA 320 defines materiality as the following: “Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.” (IFAC, 2009, para. 2). Business processes, related internal controls and information systems play a significant role in contemporary risk-based audit approaches. However, currently it is unclear how the concept of materiality should be applied to business processes especially in the context of financial audits. The aim of this research is the development of a theoretical foundation for the conceptualisation of business process materiality and calculation formulas.
Structured Literature Review, Logical Reasoning and Deduction, Focus Groups or Interviews
Last updated: 30-Aug-2016 12.23pm
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