1. THE IMPORTANCE OF DETERMINING MATERIALITY IN STATUTORY AUDITING.
- Author
-
Udrea, A. - M., Todea, N., Stanciu, I. C., Demian, G. E., Pintilie, C., and Ciuhureanu, A. T.
- Subjects
- *
MATERIALITY (Accounting) , *FINANCIAL statements , *AUDIT risk , *AUDITING , *CORPORATE finance - Abstract
The purpose of this article is to improve statutory audit in terms of theory and practice through the perspective of materiality. Although it doesn't intend to provide new data and results that may be included into the practice of statutory audit, this paper brings forward a series of recommendations that may actually improve the methodology of determining materiality. After presenting the most significant theoretical aspects regarding the calculus of materiality, the article continues with the identification of the frequency of use of the financial analysis methods during the process of determining materiality. The methods and procedures of financial analyis should have an increasingly important role in discovering, assessing and turning into account the internal reserves of the enterprise's economy. [ABSTRACT FROM AUTHOR]
- Published
- 2010