During the audit, auditors often change the preliminary judgement about materiality. For a financial statement audit for
Question:
During the audit, auditors often change the preliminary judgement about materiality. For a financial statement audit for the financial year ended 30 June 2021, which of the following factors can explain why auditors revised materiality?
A. | The preliminary judgement about materiality is based on 8 months’ financial information rather than the entire financial year’s. | |
B. | Two weeks after determining the preliminary judgement about materiality, the auditor found the client company was planning to borrow another $7 million from ANZ. | |
C. | On 31 Aug 2021, the financial report, as well as the audit report, were released to shareholders. On 21 October 2021, the auditor found that a client was fined on 1 October 2021 by Queensland Government for land contamination. | |
D. | A and B | |
E. | A, B and C |