Page 1 Canadian Auditing Standards  CICA Handbook Section 5142-Materiality  Auditing Guideline-41-Applying the Concept of Materiality  A misstatement is material if it is probable that a financial statement user's decision will be changed or influenced by the misstatement  Assumes user has a reasonable knowledge of business and economic activities  Misstatements arise from departures from generally accepted accounting principles including: ¯ Departures from fact ¯ Inappropriate determination of accounting estimates ¯ Omissions of necessary information  Misstatements may arise from error or fraud or the consequences of an illegal act 2009 Seminar for the Appointed Actuary Colloque pour l'actuaire désigné 2009 2009 Seminar for the Appointed Actuary Colloque pour l'actuaire désigné 2009
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