When Setting a Preliminary Judgement About Materiality at the Planning

question 5

Multiple Choice

When setting a preliminary judgement about materiality at the planning stage, auditors may have to subsequently change this preliminary assessment.The new assessment is called:

• A) allocated materiality.
• B) segment materiality.
• C) revised assessment of materiality.
• D) planned materiality.

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Definitions:

Standard Work

A set of instructions and procedures designed to ensure that tasks are performed consistently and efficiently across an organization.

Position Pay

The compensation or salary associated with a specific job role within an organization.

Team Appraisal

A method of performance evaluation where a team's overall effectiveness, contributions, and outcomes are assessed rather than evaluating individual members separately.

Implicit Assumption

An unspoken premise or belief that underlies an argument or decision, often taken for granted without explicit statement.