A materiality level where the auditor believes that the errors below that level would not, even when aggregated with all other misstatements, be material to the financial statements is often based on whether something is considered clearly trivial.

Question

Quizplus · Accepted Answer

This statement is true. Auditors often use the threshold of materiality to determine if a misstatement, individually or in aggregate, would have a significant impact on the financial statements. If the auditor determines that a misstatement is clearly trivial, it would not be considered material, even when aggregated with other misstatements.

A Materiality Level Where the Auditor Believes That the Errors