Innovation science and technologiy Volume 2 Issue 7 (2026) · pp. 114-121
THE INTERRELATIONSHIP BETWEEN MATERIALITY AND AUDIT RISK IN PUBLICSECTOR INTERNAL AUDITING AND THEIR APPLICATION WITHIN A UNIFIED METHODOLOGICAL FRAMEWORK
Ismatillayev, Baypo‘lat
Abstract
This article examines the theoretical foundations of materiality and audit risk in public-sector internal auditingand analyses the relationship between these concepts. The study addresses the insufficient development of an integratedmethodological framework for determining materiality and audit risk levels in national practice. Using comparative analysis,a systems approach, conceptual abstraction, and mathematical modelling, the study proposes an inverse relationship betweenmateriality and audit risk, expressed as \(M = K/R\), analyses the components of the multiplicative audit risk model, andformulates refined definitions adapted to the specific characteristics of the public sector. The findings may contribute toimproving the methodological guidance and working documents used by public-sector internal audit services.
internal audit, materiality, audit risk, public sector, materiality threshold, risk assessment, ISSAI, methodological framework.
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