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divy jain asked 8 months ago
1 Answers
RaviRavi Staff answered 8 months ago

materiality level is monetary limit used to classify misstatements into material and immaterial 
benchmark is the base on which percentage is applied to compute materiality 
for example materiality = Profit Before Tax (Rs 10,00,000)  x 5%
Materiality = 50,000
Benchmark = Profit Before Tax
Benchmark can change depending on nature of organisation etc as given in SA 320

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