Auditing - Chapter Seven

This assignment consists of one question with two parts listed below. Answer the questions and submit to the drop box on the assigned date. Your paper should be double-spaced and at minimum two pages long. You may use any format for the answer, however, when appropriate, the Conclusion, Rule, Application, Conclusion format is preferable for clarity and better understanding.

Question

Importance of materiality judgments

Explain how auditors determine planning materiality and performance materiality. What happens if performance materiality is set too high or, alternatively, too low.