Pillars Of The Audit Activity: Materiality And Audit Risk

The purpose of this article is to present the issues of materiality and audit risk within the activity of financial audit. The concepts of materiality and audit risk are described from a theoretical perspective, providing approaches found within the national and international literature and within the specific legislation. A case study on the calculation of materiality and audit risk for an entity is presented in the last part of the article. Through the theoretical approach and the case study, it was concluded that materiality has an important role in determining the type of report to be issued, that is why it can be considered helpful for those involved in the audit process.