When Determining Materiality

question 35

Multiple Choice

When determining materiality,

• A) the preliminary judgment about materiality can be increased, but not decreased during the audit.
• B) auditing standards provide specific materiality guidelines to practitioners.
• C) only one benchmark can be used.
• D) the application of guidelines requires considerable professional judgment.

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Definitions:

Autonomous Morality

The stage of moral development where individuals recognize that rules and laws are created for the good of the collective and can be changed through consensus.

Preconventional Stage

The first level in Kohlberg's theory of moral development, characterized by an individual's response to moral issues based on consequences to oneself.

Subjective

Based on or influenced by personal feelings, tastes, or opinions rather than external facts.

Wellbeing

Refers to a state of being comfortable, healthy, or happy, encompassing both physical and psychological health.