Which One of the Following Statements Does NOT Apply to the Preliminary

question 75

Multiple Choice

Which one of the following statements does NOT apply to the preliminary assessment of materiality?

• A) It is the maximum amount by which the auditor believes the statements could be misstated and still NOT affect the decisions of reasonable users.
• B) It is a matter of auditor judgement.
• C) It is a professional opinion, and it may NOT change during the engagement.
• D) Auditors decide on the combined amount of misstatements in the financial statements that they would consider material early in the audit, when they are developing the overall strategy for the audit.

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Definitions:

Symbolic Self-Awareness

Uniquely human ability to think about oneself and use language (symbols) to represent oneself to others.

Self-Reflexiveness

Ability to think about what one is doing while doing it.

Conscientiousness

A personality trait describing someone as efficient, organized, self-disciplined, dutiful, and methodical.

Agreeableness

A personality trait describing someone as friendly, compassionate, trusting, and cooperative.