This Question Is About the Auditor's Concept of Materiality Considered

question 43

Essay

This question is about the auditor's concept of materiality considered in the planning stage of the audit.
Required: A)Define or describe the independent auditor's concept of "planning materiality."
B)Name (but do not describe or explain)three common relationships or considerations used by the auditor quantifying materiality.

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Definitions:

Guidelines

A set of instructions or principles that direct actions or decisions, typically in a professional or academic setting.

Reactions

The actions or emotional responses elicited by an external stimulus or situation.

Fears

Emotional responses to perceived threats, which can vary in intensity and cause significant distress or avoidance behaviors.

Countertransference

The emotional reaction of a therapist toward the client that may interfere with objectivity, often based on the therapist's own unresolved issues.