There is a direct relationship between materiality level and the level of audit risk

Question

Quizplus · Accepted Answer

Materiality and audit risk are related concepts in auditing, but they do not have a direct relationship. Materiality refers to the significance of an error or omission in financial statements that would influence the decision of a reasonable person, while audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. Adjustments in materiality levels do not directly adjust the level of audit risk; instead, they guide the auditor in planning the nature, timing, and extent of audit procedures to reduce audit risk to an acceptably low level.

There Is a Direct Relationship Between Materiality Level and the Level