Why Might an Auditor Revise the Preliminary Assessment of Materiality

question 64

Multiple Choice

Why might an auditor revise the preliminary assessment of materiality?

• A) because client circumstances may have changed
• B) because of qualitative events
• C) because the auditor determined preliminary assessment of materiality before year-end
• D) all of the above

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Definitions:

Closed Loop

A control system where the output affects the input in such a manner as to regulate the output to a desired value.

Monitor Test

A diagnostic procedure used in automotive repair to check the performance and efficiency of vehicle systems, including emissions and sensor operations.

Vehicle

A means of transportation, typically used to refer to cars, trucks, motorcycles, and other road vehicles.

Comprehensive Component Monitor

A system in vehicular onboard diagnostics that checks the operational status of various components and subsystems to ensure they are working correctly and meet emissions standards.