In Making Judgments About Materiality at the Account Balance Level

question 19

Multiple Choice

In making judgments about materiality at the account balance level, the auditor must consider the relationship between it and financial statement 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) may be immaterial individually, but may aggregate with misstatements in other accounts to a material level.
• D) bring the cumulative total of known misstatements to the level of materiality established by management.
• E) are individually material to the account balance.

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