When Allocating Performance Materiality

question 113

Multiple Choice

When allocating performance materiality,

• A) it is easy to predict in advance which accounts are most likely to be misstated.
• B) only overstatements need to be considered.
• C) professional judgment is critical.
• D) the sum of all the performance materiality levels cannot exceed the preliminary judgment about materiality.

---

Definitions:

Ad Valorem

A term describing taxes or duties calculated as a percentage of the value of goods or property.