Audit Standards Require the Auditor to Consider Materiality Early in the Audit.Which

question 109

Multiple Choice

Audit standards require the auditor to consider materiality early in the audit.Which statement(s) regarding preliminary materiality are True?
I. Preliminary materiality may change during the engagement.
II. Preliminary materiality is the maximum amount by which the auditor believes the financials could be misstated and still not affect the decisions of reasonable users.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Personality Traits

Enduring characteristics or tendencies that define an individual’s patterns of thought, feeling, and behavior.

Inherited Characteristics

Traits or features that are passed down from one generation to the next through genes.

Categorical Approach

A method of classifying and understanding objects or concepts by arranging them into distinct groups based on common characteristics.

Problematic Personality Traits

Characteristics of an individual's personality that cause significant distress or impairment in social, occupational, or other important functions.