Copyright (c) 2023 CPA PANAMÁ
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Materiality is an old concept in auditing, it has been applied since the beginning of the twentieth century and is widely used by auditors to determine aspects that are not relevant. While audit risk is a newer concept being used since the 90s. Both concepts materiality and audit risk concepts are used throughout the audit process, from planning, execution, and communication of results, being the objective of this essay to provide information on the relationship they have in the planning of the audit and how to help provide information to determine the type of evidence that the auditor will use to execute the audit and therefore present results or opinions based on sufficient and adequate evidence. There are standards and literature dealing with the concepts of materiality and auditing; however, they approach it in a very generic way without explaining how these concepts are applied and their usefulness in the audit process, especially in planning. Being mainly the audit risk the least detailed or explained, so through this essay we will explain how audit risk is calculated, as a way to illustrate the use of this concept when planning the audit.
