If New Information Comes to Light That Would Cause the Auditor

question 131

Multiple Choice

If new information comes to light that would cause the auditor to establish a different level of planning materiality, then the auditor _______.

• A)should examine the information and make adjustments to materiality as needed
• B)issue a qualified opinion as part of the audit report
• C)follow the auditing standards that recommend an appropriate percentage of total assets as a benchmark for planning materiality for all companies
• D)have management of the company select the appropriate benchmark for planning materiality

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Definitions:

Torque Loading

The process or state of applying a rotational force to a shaft or system, affecting its speed and performance.

CEMF

Counter electromotive force, which is the voltage generated by a running motor that opposes the applied voltage.

VFD Senses

Refers to the ability of a Variable Frequency Drive to detect and respond to changes in load or environmental conditions.