Planning materiality may be taken at a lower figure than reporting materiality.

Name: Planning materiality may be taken at a lower figure than reporting materiality.
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Question

Quizplus · Accepted Answer

Planning materiality is often set at a lower figure than reporting materiality to reduce the risk of undetected misstatements and to ensure that the aggregate of uncorrected and undetected misstatements does not exceed materiality for the financial statements as a whole.

Planning Materiality May Be Taken at a Lower Figure Than