Auditors may consider only quantitative effects and not qualitative effects in making materiality judgments.

Question

Quizplus · Accepted Answer

Auditors should consider both quantitative and qualitative effects in making materiality judgments. Quantitative factors include the amount of the item, while qualitative factors include the nature and circumstances of the item. Both of these factors may impact the decision of whether an item is material or not.

Auditors May Consider Only Quantitative Effects and Not Qualitative Effects