Which of the following statements about materiality is false with respect to risk assessment? a. Misstatements are
Question:
Which of the following statements about materiality is false with respect to risk assessment?
a. Misstatements are material if they could reasonably be expected to influence the decisions of users.
b. Materiality relates to the importance or significance of an amount, transaction, or discrepancy.
c. Materiality considerations differ depending on whether the auditor is conducting a financial statement audit or an integrated audit of the financial statements and internal control.
d. Because the focus is on identifying material misstatements in the financial statements, the auditor establishes a materiality level for the financial statements overall and for specific accounts and disclosures.
Step by Step Answer:
Auditing A Risk Based Approach
ISBN: 9780357721872
12th Edition
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg