The auditor's report in the U.S. does not provide user with details on the level of materiality that the auditor used during the audit. Do you think that the audit report should disclose materiality levels? Why might the user find such information useful? Why might auditors hesitate to publicly reveal the level of misstatement that they will accept as "immaterial"? Would management have a preference regarding the public disclosure of materiality?

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Whether the audit report in the US should disclose materiality levels is a matter of debate and depends on various factors Lets explore both sides of ... View the full answer