What is Materiality?

What is Materiality

Definition: ‘Mistakes, including omissions, are supposed to be material if they, alone or on the whole, could reasonably be expected to affect the economic decisions of users taken on the basis of the financial statements.

In assessing the level of materiality there are a number of sections that should be examined.

Firstly the auditor must suppose both the amount ‘quantity’ and nature ‘quality’ of any misstatements or a mixture of both.

The quantity of the misstatement refers to the comparable size of it and the quality refers to an amount that might be low in value but due to its influence could affect the user’s decision, for example, directors’ activities.

In assessing material amount the auditor must consider that a number of errors each with a low value may be material when aggregated amount to a material misstatement.

The assessment of what is material is finally a matter of the auditor’s professional capacity, and it is influenced by the auditor’s understanding of the financial information needs of users of the financial statements and the detected level of risk;

The higher risk then takes a lower level of overall materiality.

Material by the amount for F/S as a whole

  • 1% of revenue
  • 2% of total assets
  • 10% of PBT

Material by nature

  • Related party transactions
  • Bank balances
  • Fraud/ Unlawful transactions (e.g. illegal payments)
  • Violation of regulatory requirements
  • Failure to meet requirements of debt-covenants
  • Key Performance Indicators of the company (e.g. converting loss into profit)
  • Incorrect selection or application of an accounting policy that has an immaterial effect on the current period but is likely to have a material effect on future periods

Performance Materiality

Performance materiality is usually set at a level lower than overall materiality. It is used for testing each transaction, account balance, and disclosure. The purpose of performance materiality is to decrease the risk that the total of mistakes in balances, transactions, and disclosures does not in total exceed overall materiality.

Planning Materiality Vs Performance Materiality

Planning MaterialityPerformance Materiality
1. Have Benchmark1.No Benchmark (Auditors assessment)
2. One single amount for the entire Financial Statement2. Different amounts for different ledgers/accounts.
3. Use to judge important account balance and class of transaction3. Individual balance in an individual 
account

Read More: AUDIT RISK and Auditor Response

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ACCA PM Video Lectures

ACCA PM Video Lectures

ACCA Performance Management

Previously known as F5

ACCA PM Video Lectures For students, for exam preparations within one week online lectures, Course Refresher in last days of the

Day 1

Day 2

Day 3

Day 4

Day 5

Performance Management is a mixed paper of Theoretical + Theory areas

Most Examiner focus on Theoretical Aspects of the paper, don’t try to selective study as MCQs can be from any area of PM (Performance Management),

and this paper demands practice as much as you, Practic Practic Practic. this assures your success in the,

And another thing is its also a time saver in exam time if you are used to solving questions then you can solve questions more quickly in Exam pressure,

ACCA PM Video Lectures will help you to refresh your course in five days, take one video daily and that day only solve questions related to that topic,

And don’t try to copy answers from any answer sheet because there is no paper to copy from you will need to solve by yourself.

Students Good Luck with your exams in the coming attempt, you can Contact US if you need any kind of help with your papers, study hard

The main focus of these lectures focus on CBE, techniques, approaches, paper style, and how to manage time


Days wise plan:

  • Day 1: Costing and Decision (Pricing & CVP)
  • Day 2: The decision making (Limiting factor, Relevant costing, Risk)
  • Day 3: Budgeting & Control
  • Day 4: Performance Management
  • Day 5: Questions and answer session

Read More: AAA Video Lectures

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Audit and Assurance Video Lectures

ACCA AA Video Lectures

Audit and Assurance Video Lectures

Previously known as F8

Here are AA Audit and Assurance Video lectures, held by ACCA. for exam preparation within a few days these short lectures,

The best preparation for tomorrow is doing your best today.

This is a one-week revision class, at the end of day 6, hopefully, you will be able to pass your exam of Audit & Assurance,

However, practice makes perfect, try to practice past exam questions as much as you can.

There is no shortcut to success, so don’t be trying to guess the exam questions, every single topic is important and you should prepare every topic its necessary

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

it’s all, now best of luck with your ACCA exam of Audit and Assurance.

The exam rule is:

  • Don’t be panic at all
  • Do your best
  • Don’t leave any questions unanswered

As well also prepare straightforward knowledge too. because in the audit exam there are many areas that the examiner test straightforwardly and purely knowledge-based. so those can be rote learning. you can check our Audit and Assurance exam tips

Substantive procedures are a major area of the Audit and Assurance course, so you need to learn substantive procedures very defectively.

Let us sacrifice our today so that our children can have a better tomorrow

Read More: AUDIT AND ASSURANCE

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ACCA Qualification Structure

ACCA Qualification Structure

what is ACCA Qualification?

Careers after ACCA Qualification- Here is a detailed guideline about ACCA Qualification, Entry Route, Paper Structure, and ACCA course details- Start your journey toward Accountancy Qualification


ACCA Papers List

Applied Knowledge
AB- Accounting in Business
MA- Management Accounting
FA- Financial Accounting
Applied Skills
LW- Corporate And Business Law
PM- Performance Management
TX- Taxation
FR- Financial Reporting
AA- Audit & Assurance
FM- Financial Management
Strategic Professional
Essential Papers
SBL- Strategic Business Leader
SBR- Strategic Business Reporting
Optional Papers- Pass any two
AFM- Advance Financial Management
APM- Advance Performance Management
ATX- Advance Taxation
AAA- Advance Audit & Assurance
Applied Knowledge
AB- Accounting in Business
MA- Management Accounting
FA- Financial Accounting
Applied Skills
LW- Corporate And Business Law
PM- Performance Management
TX- Taxation
FR- Financial Reporting
AA- Audit & Assurance
FM- Financial Management
Strategic Professional
Essential Papers
SBL- Strategic Business Leader
SBR- Strategic Business Reporting
Optional Papers- Pass any two
AFM- Advance Financial Management
APM- Advance Performance Management
ATX- Advance Taxation
AAA- Advance Audit & Assurance

ACCA Qualification Requirements

  • If you have University entrance Level Certification Then you can start ACCA Directly from ”Applied Knowledge”

ACCA Qualification Levels:

Applied Knowledge: Accounting in Business (AB), Management Accounting (MA), Financial Accounting (FA). Applied knowledge has a total of 3 papers.

  • In case you don’t have University entrance Level Certification Then First you need to do Foundations Diploma, this diploma has 7 basic papers, after passing this your First 3 papers of ACCA will be Exempt and you can start ACCA qualification from ACCA’s 4th paper ”F4 Corporate law” directly
  • The next six papers called ”Applied Skills”

Now you have completed 9 papers, and you are eligible for ”Bsc in applied accounting from Oxford Brookes University”

  • Now Next level is Strategic Professional Level papers
  • Essentials Papers
  • Optional (Pick any two out of four)
  • Here your Academic study is Completed and you are an ACCA affiliate, But to become a member you need Experience of 36 Months in the relevant field,
  • Congratulation, Now you are a new member of the Worlds most forward-thinking Professional Accountancy Body

Why choose ACCA Qualification?

Let me give you reasons o choose ACCA Qualification

  • you’ll discover a world of opportunity with 188,000 Members and 480,000 students in 178 countries. you will become part of a global network, you will get a qualification That’s recognized around the world.
  • And you can tailor your studies for local law and tax to suit wherever you want to go
  • Employers Trust ACCA, with 110 years of experience so employers trust ACCA to deliver skilled professionals, which ACCA does to 7400 employers around the world and ACCA has Careers Giving to students and members the career portal and the job board with thousands of vacancies waiting to be filled.
  • Automatic Network: once you become an ACCA member you will get access to thousands of finance professionals in ACCA member’s LinkedIn group, Providing with invaluable connection and potential mentoring opportunities, Or get involved through face to face networking events in your local area of students and members and connect with fellow students through the virtual learning community.
  • ACCA studies are Brilliantly flexible, what to study full time? or fit your studies around work? No problem, study on your own with one of ACCA’s many approved learning partners face to face with tutors or choose a mix of all three or you could use ACCA-x and. study online you can even gain a BSC degree from Oxford Brookes University and a globally recognized MSC degree from the University of London at the same time. ACCA’s specialism options allow you to be an expert in your chosen field
  • Quality Control? check! The material you use and the people who teach you have to meet ACCA’s high stander, and ACCA’s approved learning partners that have been specially selected are regularly assessed.
  • ACCA’s Staff is always available to Support you, ACCA’s website has messes of online material including study guides, past papers, and inspirational articles from top people. Who were once just like you, will also work hard to make exams flexible and convenient. ACCA always thinking ahead and looking for fresh ways to help the student.
  • There’s already twenty-four seven support and tips with the ACCA learning community and if English isn’t your first language BPP university can provide you with tailored English language support

This is the opportunity to get the right skills and knowledge to build your career as a Finance Professional

Accountant Salary: according to a survey an ACCA member earns 28000+ British pounds annually.

ACCA Member acca qualification

ACCA Qualification Cost

The total cost of ACCA Qualification according to my estimate can be around 3000 Pounds in total in a normal situation. The cost of ACCA Qualification can vary from situation to situation, person to person, and country to country. Every time you need to check the latest ACCA Exam Dates you can click here.


ACCA Qualification Salary:

jobs with ACCA Qualification
benefits of ACCA Qualification


ACCA Qualification equivalent


ACCA provides 4 attempts in a year, a total of 8 attempts in 2 years, and a total paper of ACCA 13, So this is very much possible to pass ACCA within two years.

No, it’s not, ACCA is a global body of professional accountants providing certification at a reasonable cost, ACCA will pay you in practical life after certification.

ACCA can be completed within 2 years.

You can pay ACCA’s fees with your Credit card or Debit card.

Honestly no, you need an ACCA-approved tuition provider.


If you still have any queries you can Contact US, we will be happy to assist you.

Read more: ACCA Official website

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