What Should Your Month End Reports Contain?
Materiality is the amount that an omission or misstatement within the financial statements will seriously mislead people who use the financial statements of that company.
Accounting materiality is often judged by the relative amounts and the nature of each item or transaction. Auditors use this concept everyday during the audit process. During the audit process, gather evidence of material. Then try and assess whether you should do something about that particular. Often times, address these serious issues before they become a problem. If an item is considered to be material, then either look further to address a change or disclose it within the notes of the financial statements.
Is your closing process as efficient as it could be? Access our Complete Monthly Close Checklist to use when you close your company’s or your client’s monthly books.