Which of the following statements is not true about materiality judgments?
A) The auditor's consideration of materiality is influenced by the auditor's perception of the needs of users of financial statements.
B) The auditor considers materiality only in relation to classes of transactions, account balances, and disclosures.
C) Materiality judgments are used to help the auditor gather sufficient appropriate evidence about whether the financial statements are free of material misstatement.
D) Materiality decisions differ from one audit client to another.

Question

Quizplus · Accepted Answer

The statement "The auditor considers materiality only in relation to classes of transactions, account balances, and disclosures" is not true. While materiality is a concept that is primarily related to classes of transactions, account balances, and disclosures, it can also be applied to other aspects of the audit, such as the evaluation of internal controls or the selection of auditing procedures.

Which of the Following Statements Is Not True About Materiality