Why Might an Auditor Revise the Preliminary Assessment of Materiality

question 69

Multiple Choice

Why might an auditor revise the preliminary assessment of materiality?

• A) Because of qualitative events
• B) Because the auditor determined preliminary assessment of materiality before year- end
• C) Because client circumstances may have changed
• D) All of the above

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Definitions:

Racism

Discrimination or prejudice directed against someone of a different race based on the belief that one's own race is superior.

Minimizing

The psychological strategy of downplaying or understating the significance of events or emotions, often as a coping mechanism.

Prejudice

An antipathy or negative feeling, either expressed or not expressed, based on a faulty and inflexible generalization that places a group of people at some disadvantage not merited by their actions.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.