When an auditor allocates materiality to segments,then the materiality amount for different accounts under audit will
A)potentially differ from each other.
B)require the same level of unanticipated misstatements.
C)require the same amount of audit work.
D)be the same for each account audited.

Question

Quizplus · Accepted Answer

When allocating materiality to segments, an auditor considers the risk profile and characteristics of each segment. As a result of this, the materiality amount for different accounts under audit may potentially differ from each other. This is because different accounts may have different levels of inherent risk and susceptibility to misstatements, which the auditor considers when determining materiality.

When an Auditor Allocates Materiality to Segments,then the Materiality Amount