Which of the following is part of planning?
A) Set materiality for the financial statements as a whole.
B) Estimate total misstatement in the segment.
C) Estimate the combined misstatement.
D) Compare the combined estimated with preliminary judgment.

Question

Quizplus · Accepted Answer

Setting materiality for the financial statements as a whole is part of the planning process in an audit. This involves determining the threshold above which misstatements in the financial statements are considered material and therefore significant to the users of these statements.

Which of the Following Is Part of Planning