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IAAE is an ICAEW initiative − an online service offering resources to support the practical implementation of international standards on accounting, auditing and ethics.  \nIAAE is a partnership scheme which provides high-quality technical information to help individual professional accountants and their local professional organisations. Written and delivered by specialists in their field, resources include factsheets, practical guidance, webinars, case studies and topical articles, plus a regular e-bulletin with the latest technical developments. These provide practical, accurate and reliable information to help Professional Accountancy Organisations (PAOs) and their members implement international standards and share best practice internationally, thus supporting the development and sustainability of the global profession.  \nTo find out more about how IAAE can support the implementation of international standards, visit [icaew.com/iaae](icaew.com/iaae) or contact Deborah Chaplin (Director, Faculties) at [deborah.chaplin@icaew.com](deborah.chaplin@icaew.com).  \nABOUT THE AUDIT AND ASSURANCE FACULTY  \nThe ICAEW Audit and Assurance Faculty is a leading authority on external audit and other assurance services.  \nAudit insights provides a platform for auditors to share their expert knowledge and experiences of a market sector or business issue to a diverse range of stakeholders.  \nAuditFutures is a thought leadership initiative of ICAEW's Audit and Assurance Faculty, established in 2012 in partnership with the Finance Innovation Lab.  \nThe faculty is at the cutting edge of the developing assurance market, offering practical guidance for practitioners and clients as they move into this new area.  \nThe Audit Quality Forum (AQF) brings together stakeholders to promote open and constructive dialogue about transparency, accountability, reporting and confidence in external audit.  \nFor more information on the Audit and Assurance Faculty visit [icaew.com/audit](icaew.com/audit).  \nIf you would like to comment on this publication or find out more about the issues raised, contact Louise Sharp at [louise.sharp@icaew.com](louise.sharp@icaew.com).  \nThis ICAEW guide includes extracts from the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, 2016-2017 Edition of the International Auditing and Assurance Standards Board (IAASB), published by the International Federation of Accountants (IFAC) in December 2016, and is used with permission of IFAC. Contact [Permissions@ifac.org](Permissions@ifac.org) for permission to reproduce, store or transmit, or to make other similar uses of this document.  \nThis text from the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, 2016-2017 Edition of the International Auditing and Assurance Standards Board (IAASB), published by the International Federation of Accountants (IFAC) in December 2016 is used by ICAEW with permission of IFAC. Such use of IFAC’s copyrighted material in no way represents an endorsement or promotion by IFAC. Any views or opinions that may be included in the guide Materiality in the audit of financial statements are solely those of ICAEW, and do not express the views and opinions of IFAC or any independent standard setting board supported by IFAC.  \nInternational Standards on Auditing (ISAs) and their respective logos are trademarks or registered trademarks of the International Federation of Accountants (IFAC) .  \n© ICAEW 2017  \nAll rights reserved. If you want to reproduce or redistribute any of the material in this publication, you should first get ICAEW's permission in writing.  \n","cbCaiuc83BSzImdu","https://ap.wps.com/l/cbCaiuc83BSzImdu","pdf",782892,34,"English","# Contents\n## Introduction\n## What is materiality and why is it important?\n## Determining materiality\n## Applying materiality to the evaluation of identified misstatements","[{\"question\":\"What is materiality and why is it important in auditing financial statements?\",\"answer\":\"Materiality is a key concept used to determine the relevance of misstatements in the context of the financial statements. It is important because it drives audit planning and the evaluation of whether identified misstatements matter.\"},{\"question\":\"How do auditors determine overall and performance materiality?\",\"answer\":\"The guide explains a structured method for determining overall materiality and then setting performance materiality to guide audit work. It includes examples, including total revenue, to illustrate the approach.\"},{\"question\":\"How is materiality applied when evaluating identified misstatements?\",\"answer\":\"Auditors accumulate misstatements, categorise them, and assess their materiality to decide how they affect audit conclusions. The guide describes this process in the context of materiality evaluation during the audit.\"}]","Materiality in the audit of financial statements - Audit guide | PDF",86]