By Setting a Lower Planning Materiality Level, an Auditor

question 71

Multiple Choice

By setting a lower planning materiality level, an auditor

• A) decreases the quality and quantity of evidence that needs to be gathered.
• B) does not change the audit strategy they use.
• C) increases the quality and quantity of evidence that needs to be gathered.
• D) can be certain that they will detect all instances of fraud that have occurred.

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Definitions:

Add Value

The process of increasing the worth of a product or service by improving it or adding features to it.

Inputs

The resources, raw materials, labor, and energy used in the production process to create goods or services.

Microbreweries

Small-scale breweries that produce limited quantities of beer, often characterized by their emphasis on quality, flavor, and traditional brewing methods.

Synthetic System

An artificial arrangement or system designed to imitate or replicate certain functions of a natural system.