Silka is in the process of performing an audit.During the audit,Silka decided to change materiality.A valid reason for this would be
A)a new user of the financial statements was identified.
B)a fraud was discovered in the accounts payable section.
C)materiality required the auditors to perform too many tests.
D)too many errors were found during testing.

Question

Quizplus · Accepted Answer

If a new user of the financial statements is identified, it may require a change in materiality. This is because different users may have different information needs and a change in materiality may better address the needs of the new user. A fraud discovery, finding too many errors, or performing too many tests may also impact the audit, but these reasons may not necessarily require a change in materiality.

Silka Is in the Process of Performing an Audit