I. Define Materiality as Described in ASA320

question 33

Essay

i. Define materiality as described in ASA320.
ii. Identify the two levels of materiality that are important in audit planning and indicate the reason for each level.

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Definitions:

B2B

Business-to-Business, describing transactions or relationships between two companies, as opposed to between a company and individual consumers.

B2C

Business to Consumer, a sales model in which businesses sell products or services directly to consumers.

C2C

Consumer to Consumer, a business model that facilitates transactions between individuals, typically through an online platform.

G2C

Government to Citizen, a model of e-government where government services and information are directly available to citizens through electronic means.