Document Type

Article

Publication Date

3-1-1998

Publication Source

The Government Accountants Journal

Abstract

The political sensitivity of the area under audit to adverse media exposure and litigation concerns the nature rather than the size of an amount, such as illegal acts, bribery and corruption, related party transactions, snowballing patterns of error and other risks that grow over time. Qualitative materiality considerations should not be ignored-they can and frequently do influence the nature and scope of governmental audits. Financial Accounting Standards Board Concepts Statement No. 2 defines materiality as the magnitude of an omission or misstatement that would influence the decisions of a user of financial statements. Audit planning needs to incorporate considerations of audit effectiveness and audit efficiency. An article presents several approaches to audit planning that provide more consideration of qualitative materiality, without denying the obvious importance of quantitative materiality.

Inclusive pages

44

ISBN/ISSN

1533-1385

Document Version

Published Version

Comments

This document is provided for download with the permission of the author and the publisher. Permission documentation is on file.

The Government Accountants Journal now goes by the title Journal of Government Financial Management. Its volume numbers are continuous.

Publisher

Association of Government Accountants

Volume

47

Issue

1


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