The Auditors Must Consider Materiality in Planning an Audit Engagement

question 19

Multiple Choice

The auditors must consider materiality in planning an audit engagement.Materiality for planning purposes is:

• A)The auditors' preliminary estimate of the largest amount of misstatement that would be material to any one of the client's financial statements.
• B)The auditors' preliminary estimate of the smallest amount of misstatement that would be material to any one of the client's financial statements.
• C)The auditors' preliminary estimate of the amount of misstatement that would be material to the client's balance sheet.
• D)An amount that cannot be quantitatively stated since it depends on the nature of the item.

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Definitions:

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