Auditors Often Set Performance Materiality at a Low Level for Accounts

question 91

True/False

Auditors often set performance materiality at a low level for accounts in the capital acquisition and repayment cycle because it is usually possible to completely audit the account balance and each of the transactions in these accounts.

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Definitions:

Proximity to Market

The closeness of a business or production site to its buyers or consumers, which can reduce transportation costs and improve supply chain efficiency.