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Material and Fundamental errors ?

Material and Fundamental errors ?

Can anyone provide me with the definition of a material error and a fundamental error and where the definition is obtained from ? ( I have a meeting with my Auditor tomorrow !)



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04th Jul 2012 16:43

Try this

"Omissions or misstatements of items are material if they could, by their size or nature, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements."

"FRS 3 Reporting Financial Performance also has the concept of ‘fundamental error’. Fundamental errors are defined at paragraph 63 to FRS 3 and are ‘those that are of such significance as to destroy the true and fair view and hence the validity of financial statements.’"

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