Exemption on materiality 3121

  • Is it possible to exempt certain entities (subsidiaries or Joint Ventures) of foreign private issuer on the context of materiality. or is there any other escape available. If yes, kindly provide the literature reference also.
    If not, is the complete process of documentation, testing controls is required to be done, in these non-material entities.

  • When a company executive provides an opinion on internal controls over financial reporting, it is to cover all material aspects on the company financials. That would mean that subsidiaries that are insignificant (judgement call) can be excluded from controls testing.

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