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<p>Local authority auditors are required to comply with International Auditing Standards
(IAS) when they set materiality thresholds for local authority audits. IAS 320 states
that the auditor's determination of materiality is a matter of professional judgement
and it explains that misstatements, including omissions, are considered to be material
if they, individually or in the aggregate, could reasonably be expected to influence
the economic decisions of users taken on the basis of the financial statements</p><p><br>
It is not our role to make a judgement on whether the materiality level set by an
auditor is unusual or not. However, when setting the materiality level, the auditor
should ensure their judgement is justified transparently including a demonstration
of how they have designed their audit work to suit the structure and operations of
local authorities</p><p><br> If a person wants to make a complaint about the work
of an auditor, in the first instance they should complain directly to the senior audit
partner using the firm's complaint processes. Auditors are obligated to consider all
complaints. Following that, if the complaint is not resolved, further escalation can
be made to the auditor's Responsible Supervisory Body (RSB).</p>
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