In a normal audit, the relationship between the level of materiality used to plan the engagement and the level of materiality used to evaluate evidence is:
A) they must be identical.
B) the former may be either higher or lower than the latter.
C) the former is normally higher than the latter.
D) the former is normally lower than the latter.
E) they can never be the same.

Question

Quizplus · Accepted Answer

The level of materiality used to plan the engagement may differ from the level used to evaluate evidence due to changes in circumstances or findings during the audit.

In a Normal Audit, the Relationship Between the Level of Materiality