If Materiality Judgments Change During the Audit Opinion Formulation Process

question 41

Multiple Choice

If materiality judgments change during the audit opinion formulation process, what happens to previous audit decisions that were based on the evidence obtained using the initial material setting?

• A) They need to be reassessed.
• B) They need to be noted in the footnotes.
• C) No action is required.
• D) None of the above.

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Definitions:

Lethality

The capacity of something to be deadly or to cause death.

Ideation

The process of forming ideas, concepts, or images in the mind.

Protective Factors

Elements of a person's environment or characteristics of a person that help to reduce the risk of negative outcomes or enhance positive outcomes.

Dry Run

A rehearsal or practice session undertaken before an actual event, to test processes or operations.