Which of the following statements is not correct about materiality?
A) Performance materiality is an estimate of materiality set lower than the estimate of materiality for the financial statements as a whole.
B) Materiality involves both quantitative and qualitative judgements.
C) Auditor's consideration of materiality is influenced by the auditor's perception of the needs of an informed decision maker who will rely on the financial statements.
D) At the planning state, the auditor considers materiality at the financial statement level only.

Question

Quizplus · Accepted Answer

At the planning stage, the auditor considers materiality at both the financial statement level and the account balance, class of transactions, or disclosure level, not just at the financial statement level.

Which of the Following Statements Is Not Correct About Materiality