QUALITATIVE MATERIALITY Sample Clauses

QUALITATIVE MATERIALITY. Materiality is not merely related to the size of the entity and elements of the financial statements. Misstatements that are large individually or in aggregate may affect the reasonable user’s judgement. Misstatements may also be material on qualitative grounds. The following are some of the qualitative factors to be considered: i) Any breaches to procedures or processes required by legislation or regulation. ii) Transaction entered into that could result in reputation risk to ▇▇▇▇▇▇. iii) Unusual transactions entered into that are not of a repetitive nature, as well as new ventures that ▇▇▇▇▇▇ has entered into. These are purely disclosed due to their nature and the knowledge that they could affect the decision of the users of the financial statements. iv) Any fraudulent and dishonest behaviour of officers or staff. 1. INTRODUCTION The definition of cost containment is “the process of controlling the expenses required to operate an organisation or perform a project within pre-planned budgetary constraints.” The cost-containment process is an important management function that helps keep costs down to only necessary and intended expenses in order to satisfy financial targets. Budget monitoring is performed on a regular basis to ensure that there is no excessive spend. ▇▇▇▇▇▇’s focus is to improve efficiencies through better utilisation of resources. Accounting officers and accounting authorities are required, in terms of section 38(1)(c)(iii) and 51(1)(b)(iii) of the PFMA, to implement control measures to ensure that all expenditure in their respective institutions is necessary, appropriate, cost effective, recorded and reported, as prescribed by the relevant legislative framework. In giving effect to this requirement, accounting officers and accounting authorities are responsible for ensuring that all employees are mindful of the current economic realities and the need to intensify efforts to improve efficiency in expenditure. The Cost-containment Plan, as set in National Treasury Instruction/Circular No. 2 of 2016/17, issued on 30 September 2016, gives account of some of the measures that ▇▇▇▇▇▇ will continue to implement over the planning period. 2. BACKGROUND Operational/discretionary expenditure reduced from 43% of total expenditure in 2012/13 to 36% in 2016/17. This was partly attributed to the cost-containment measures implemented over the years and other efficiencies. The internal control environment was enhanced to identify excessive costs, such as...

QUALITATIVE MATERIALITY. Materiality is not merely related to the size of the entity and elements of the financial statements. Misstatements that are large individually or in aggregate may affect the reasonable users‟ judgement. Misstatements may also be material on qualitative grounds. The following are some of the qualitative factors to be considered: • Any breaches to procedures or processes required by legislation or regulation • Transaction entered into that could result in the reputation risk to Mintek. • Unusual transaction entered into that are not of a repetitive nature as well as new ventures that Mintek has entered into. These are purely disclosed due to their nature and the knowledge that they could affect the decision of the users of financial statements. • Any fraudulent and dishonest behaviour of officers or staff. Throughout this document, unless otherwise stated, the words in the first column below have the meanings stated opposite them in the second column (and cognate expressions shall bear corresponding meanings):