Question: 7. When auditors determine financial statement materiality for a given audit engagement, they should primarily base their decisions on: a. materiality level used by the

7. When auditors determine financial statement materiality for a given audit engagement, they should primarily base their decisions on: a. materiality level used by the company's management for internal audits. b. users of the financial statements and their specific needs. c. the prior year's materiality level. d. the risk level determined in the preliminary assessment

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