Prior to beginning interim work on a recurring audit, an auditor makes a preliminary judgment about materiality.

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Prior to beginning interim work on a recurring audit, an auditor makes a preliminary judgment about materiality. Which of the following would not be an appropriate base for this decision?

a. Current-year actual net income.

b. Annualized net income for the first nine months of the current year.

c. Prior-year audited net income.

d. Current-year budgeted net income.

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Auditing An Assertions Approach

ISBN: 9780471134213

7th Edition

Authors: G. William Glezen, Donald H. Taylor

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Question Posted: May 07, 2024 02:01 AM

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Prior to beginning interim work on a recurring audit, an auditor makes a preliminary judgment about materiality.

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The correct answer is d Currentyear budgeted net income When making a preliminary judgment about mat...View the full answer

Auditing An Assertions Approach

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