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Executive Summary:

ISSAI 1320 – Materiality in Planning and Performing an Audit


This Practice Note provides supplementary guidance on ISA 320 – Materiality in Planning and Performing an Audit

ISSAI Category:

Level 4: General Auditing Guidelines - General Auditing Guidelines on Financial Audit

Target Group:

Public sector external auditors


ISA 320 deals with the auditor's responsibility to apply the concept of materiality in planning and performing an audit of financial statements

Scope - Content:

When determining materiality for planning purposes in the public sector, both quantitative and qualitative matters as well as the nature of items are of importance.

When determining whether a particular class of transactions, account balance, disclosure or other assertion, which is part of the financial reporting framework, is material by virtue of its nature, public sector auditors should take into account qualitative aspects too.

Author - Committee:

INTOSAI Professional Standards Committee – Financial Audit Subcommittee


Approved at XXth Congress of INTOSAI, Johannesburg 2010


Related Documents - Executive Summaries:
Related Documents - ISSAI Full Versions:
Related Documents - Others:

ISA 320 is applicable to auditors of public sector entities in their role as auditors of financial statements.

ISA 320 should be applied together with ISA 450 (Evaluation of Misstatements Identified during the Audit). This ISA explains how materiality is applied in evaluating the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements.

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