When Setting the Level of Materiality on a Particular Engagement

question 25

Multiple Choice

When setting the level of materiality on a particular engagement, the auditor is required to consider:

• A) the unique circumstances pertaining to the entity.
• B) the information needs of the users.
• C) neither the unique circumstances pertaining to the entity nor the information needs of the users.
• D) the information needs of the client.
• E) both the unique circumstances pertaining to the entity and the information needs of the users.

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Definitions:

Occurrences

Instances or examples of something happening; events that take place.

Specified Interval

A defined range or period, often set for a particular purpose or task, indicating the precise limits within which something operates or occurs.

Binomial Experiment

An experiment having the four properties stated at the beginning of Section 5.5.

Probability Of Success

The likelihood of a given success event occurring, often denoted in scenarios like binomial outcomes where success is one outcome.