In Making Judgements About Materiality at the Account Balance Level

question 1

Multiple Choice

In making judgements about materiality at the account balance level, the auditor must consider the relationship between it and overall materiality. This should lead the auditor to plan the audit to detect misstatements that:

• A) are individually material to the statements taken as a whole.
• B) are individually immaterial to the statements taken as a whole.
• C) bring the cumulative total of known misstatements to the level of materiality established by management.
• D) may be immaterial individually, but may aggregate with misstatements in other accounts to a material level.

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Definitions:

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