Why do auditors choose this criterion as a starting point in determining materiality and not the other criterion, and what ratio is appropriate?

The Role of a Financial Statement Audit in the Enterprise|| AS Auditing - A financial statement audit ensures that the information in the financial statements gives a true and fair view, in all material aspects, of the financial situation, the results of operation, and the cash flows of an enterprise.

.Transfer pricing is a matter of concern for businesses, but businesses often omit or do not know that they are required to declare and prepare documents related to transfer pricing.

in related transactions. Let’s review the formula firstly. EBITDA is equal to, Net profit from operations plus Loan interest expense plus Depreciation expense. EBITDA was born in 1980 in the United States with the purpose of searching enterprises that are in recession, but have overcome the recession, and survived. The researching experts found that enterprises could overcome the recession because they were able to pay 2 important compulsory debts in business, are government tax debt, and bank debt.

Determining deductible expenses when calculating corporate income tax is especially important, because it helps to reduce tax payable, limit the risk of tax arrears and penalties, and this is also a criterion for assessing the applicability of tax and accounting laws of accountants. The phrases “deductible expenses” or “reasonable and valid expense” used in corporate income tax calculation have the same meaning. The above phrases are very commonly used in the accounting profession.