If the Auditor Sets a Low Dollar Amount as Materiality

question 4

Multiple Choice

If the auditor sets a low dollar amount as materiality,

• A)more evidence is required than for a high amount.
• B)less evidence is required than for a high amount.
• C)the same amount of evidence is required as for a high dollar amount.
• D)it has no effect on the amount of evidence required.

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Definitions:

Fixation

An obsessive or persistent focus on an object, concept, or person that can impede emotional and developmental growth.

Psychosexual Development

Freud's theory describing how personality develops through stages centered on erogenous zones from childhood to adulthood.

Oral Stage

In psychoanalytic theory, the first stage of psychological development, focusing on pleasures and frustrations associated with the mouth.

Superego

The component of the human psyche in Freudian psychoanalysis that is responsible for moral standards and self-criticism.