[Manuelo]

Can someone exaplain what this means?

“Materiality and audit risk also underlie the application of the 10 standards of GAAS.”

I’m trying to understand what this means in more simple terms. Can someone provide an example?

I think what it’s saying is “Ok, so Planning and supervision (for example) depend on materiality and the risk that the financial statements can be misstated.”

Am I right?

[Zaq]

TIP – Training, Independence Professional Care [General Standards]

PIE – Planning and Supervision, Internal Control, and Evidence [Fieldwork Standards]

ACDO – Accounting (100% GAAP), Consistency, Disclosure, and Opinion is expressed [Reporting Standards]

Both materiality and audit risk, as you stated, are assessed under the “P” in the fieldwork standards.

So I guess they're just saying that both materiality and audit risk are applied via 10 Standards of GAAS. It is quite literally applied from the Fieldwork Standards, but since the fieldwork standards are a part of the 10 standards then it's still correct; just very generalized.

FAR: 50, 76!
REG: 74... (ouch baby, very ouch), 76!
AUD: 65, 91!?
BEC: 80! Aaaand doneskies!

May 2012 to August 2013. Can't believe it's over.

[Author]

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