Importance of Materiality Judgments Explain How Auditors Determine Planning Materiality

question 4

Essay

Importance of materiality judgments Explain how auditors determine planning materiality and performance materiality.What happens if performance materiality is set too high or,alternatively,too low.

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Definitions:

External Adaptation

The process of adjusting or modifying external elements or surroundings to better fit or survive in them.

Group Boundaries

The defined edges or limits of a group that distinguish its members from non-members and help maintain its existing structures and norms.

Measurement

The process of determining the size, length, or amount of something using standard units.

Product Obsolescence

The process by which a product becomes outdated or no longer useful, often due to advances in technology or changes in consumer preferences.