Olennaisuusriskiä

Olennaisuusriskiä refers to the risk that a misstatement, individually or in aggregate, could be material to the financial statements of an entity. This concept is fundamental in auditing and financial reporting. Materiality is determined by the size or nature of a misstatement and the surrounding circumstances. Information is considered material if its omission or misstatement could reasonably influence the economic decisions of users taken on the basis of the financial statements. Auditors establish materiality levels at the planning stage of an audit to identify and assess risks of material misstatement and design audit procedures accordingly. Misstatements can arise from errors or fraud. Errors are unintentional mistakes, while fraud involves intentional acts designed to deceive. The auditor's judgment is crucial in determining what constitutes a material misstatement, as there is no single, universally applicable definition. Factors considered include quantitative measures (e.g., a percentage of net income or total assets) and qualitative factors (e.g., a misstatement that turns a profit into a loss, or affects compliance with debt covenants). Understanding and managing olennaisuusriskiä is essential for ensuring the reliability and fairness of financial reporting.