If materiality judgments change during the audit opinion formulation process, what happens to previous audit decisions that were based on the evidence obtained using the initial material setting?
A) They need to be reassessed.
B) They need to be noted in the footnotes.
C) No action is required.
D) None of the above.

Question

Quizplus · Accepted Answer

If materiality judgments change during the audit opinion formulation process, all previous audit decisions that were based on the evidence obtained using the initial materiality setting need to be reassessed. This is because these decisions may no longer be relevant or appropriate given the updated materiality threshold.

If Materiality Judgments Change During the Audit Opinion Formulation Process