If the auditor sets a low dollar amount as materiality,
A)more evidence is required than for a high amount.
B)less evidence is required than for a high amount.
C)the same amount of evidence is required as for a high dollar amount.
D)it has no effect on the amount of evidence required.

Question

Quizplus · Accepted Answer

Setting a low dollar amount as materiality means the auditor considers even small misstatements to be significant. Therefore, the auditor will require more evidence to ensure the financial statements are free from material misstatement, compared to setting a higher materiality threshold.

If the Auditor Sets a Low Dollar Amount as Materiality