Fixed Assets - Materiality

Anonymous
Anonymous

Our external auditors have set our level of materiality at £12m, during the 2019/20 audit they expressed that this level of materiality was across all of the accounts including PPE.  Given we have fixed assets valued at over £1bn, it wouldn't take much to hit the materiality threshold on PPE alone.

Does anyone else auditors take this approach or do they apply a different materiality to PPE?

  • I think under the audit standards they have to just apply the one level consistently across all I&E and balance sheet headings. Drives us into having to revalue nearly all assets every year because the Code says the value of assets has to be materially correct.