Performance Materiality
An amount set below overall materiality, to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
Related terms
- Payroll Fraud
Manipulation of the payroll process for personal gain — ghost employees, inflated hours, unauthorised rate changes — tested for through red-flag analytics rather than vouching alone.
- Peer Review (ICAI)
A review of a chartered accountant firm's attest function by another practising member, mandated by ICAI for firms conducting statutory audits of specified entities.
- Perpetual Inventory System
An inventory record that updates continuously as transactions occur, as distinct from a periodic system that only determines quantities at a physical count.
- Petty Cash
A small cash fund held for minor day-to-day expenses, reconciled and replenished periodically — a disproportionately common source of control weakness given the small amounts involved.
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