As Planning Materiality Is Decreased,the Auditor Should Plan More Work

question 53

Multiple Choice

As planning materiality is decreased,the auditor should plan more work on individual accounts to.

• A)Find smaller misstatements.
• B)Find larger misstatements.
• C)Increase the tolerable misstatement in the accounts.
• D)Decrease the risk of assessing control risk too low.

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Definitions:

Opportunity Cost

The cost of foregone alternatives, representing the benefits that could have been received by choosing the next best alternative.

Subjective Values

The personal importance or worth that an individual places on a good or service, which can vary greatly between people.

Time Costs

The opportunity costs associated with the time spent on an activity instead of other, potentially more valuable, activities.

Transaction Costs

Expenses incurred in making an economic exchange, including search, bargaining, and enforcement of contracts.