If an Auditor Establishes a Relatively High Level for Materiality

question 41

Multiple Choice

If an auditor establishes a relatively high level for materiality, then the auditor will

• A) accumulate more evidence than if a lower level had been set.
• B) accumulate less evidence than if a lower level had been set.
• C) accumulate approximately the same evidence as would be the case were materiality lower.
• D) accumulate an undetermined amount of evidence.

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, typically showing the number of data points that fall within range bins.

Positively Skewed

A description of a distribution of data that is stretched or pulled out towards higher values, with a longer right tail.

Proportion

The fraction of a whole that represents a part of the population or dataset, often expressed as a percentage or decimal.

Observations

Observations are individual pieces of data or measurements collected during an experiment or survey, often used as a basis for analysis and conclusions.