When determining the appropriate audit report to issue, the auditor considers three levels of materiality for a
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Question:
When determining the appropriate audit report to issue, the auditor considers three levels of materiality for a given condition. These three levels are:
(1) immaterial,
(2) material without overshadowing the financial statements as a whole, and
(3) so material and so pervasive that overall fairness of the statements is in question.
Discuss how each materiality level affects audit reporting decisions by indicating the type of report to be issued in situations where there is a departure from GAAP, and scope limitation in the performance of audit procedures.
Related Book For
Auditing A Practical Approach
ISBN: 9780730382645
4th Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
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