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Set materiality

Last updated 2 May 2024

Set materiality

Materiality refers to the significance of misstatements in information. Misstatements are errors, omissions or misrepresentations.

Not all misstatements are material. It depends on the size, nature and impact of the misstatement. A misstatement is considered material if it could influence the decisions of people using greenhouse and energy information.

There are 2 types of materiality:

● Quantitative materiality: the specific threshold or level of misstatements that could impact how people using the information make decisions.

● Qualitative materiality: looks at the broader context and impact of misstatements and how they affect people's understanding of the information.

Auditors focus on material misstatements during their audits.

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Assurance engagement process

Assurance engagements tell us how confident we can be in the information provided to us.

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