Question: Why is performance materiality allocated to different financial statement accounts? Question 9 Answer a . To ensure each account has the same materiality threshold. b

Why is performance materiality allocated to different financial statement accounts?
Question 9Answer
a.
To ensure each account has the same materiality threshold.
b.
To reduce the risk that aggregate uncorrected misstatements exceed overall materiality.
c.
To limit the scope of substantive testing.
d.
To comply with managements preferences.

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