What should I consider when identifying and assessing the materiality of misstatements in reported EER information?
There can be many challenges in determining what may be material in your EER engagement, and in evaluating the effect of identified misstatements in those parts of the EER report that are within the scope of the EER engagement.
In addition, the intended users of the EER report may be diverse, with different information needs, and different considerations that might affect their decision making. The subject matter information for an EER assurance engagement may be all or only part(s) of an EER report.
Chapter 9, “Considering the Materiality of Misstatements,” provides guidance on:
- qualitative and quantitative considerations in identifying misstatements;
- your responsibilities when you identify misstatements during the EER assurance engagement;
- how to accumulate misstatements; and
- potential considerations when evaluating the materiality of misstatements, including those that arise in subject matter information that is subject to inherent variability or uncertainty.
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