Question 1
When determining whether an account ought to be considered significant, the auditor should consider planning materiality threshold. An account whose financial statement surpasses the planning materiality ought to be considered significant for both the financial statement audit, as well as, internal control over the financial reporting audit. In essence, the accounts that exceed the planning materiality more should be greatly considered significant.
The qualitative factors that can cause an account, which is otherwise quite small quantitatively to be considered significant according to AS5 include:
