Why Do Auditors Establish a Preliminary Judgment About Materiality

question 157

Multiple Choice

Why do auditors establish a preliminary judgment about materiality?

• A) to determine the appropriate level of staff to assign to the audit
• B) so the client can know what records to make available to the auditor
• C) to help plan the appropriate evidence to accumulate
• D) to finalize the control risk assessment

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Definitions:

Subject Matter

the specific topic, content, or theme that is being discussed, studied, or dealt with.

Parties

Individuals or entities involved in legal agreements or disputes.

Price

The amount of money required to purchase an item or service.

Statute of Frauds

The Statute of Frauds is a legal principle that requires certain types of contracts to be executed in writing to be enforceable.