Identify Each of the Three Major Issues or 'Difficulties' an Auditor

question 61

Essay

Identify each of the three major issues or 'difficulties' an auditor must consider when allocating materiality to accounts, and describe how each issue affects the allocation decision.

---

Definitions:

Collectivism

A cultural value that emphasizes the importance of groups and community over individual interests.

Values

Fundamental beliefs or standards that dictate an individual's behavior and decision-making, shaping their perception of right and wrong.

Incongruent Conflicts

Disputes arising from differences in goals, values, or interests between individuals or groups.

Achievement

The successful attainment of objectives or goals through effort, skill, or courage.