Which of the following is a reason that the auditors may change the preliminary judgment about materiality?
A) The auditors decide that the preliminary judgment was too large.
B) The auditors decide that the preliminary judgment was too small.
C) Client circumstance may have changed due to qualitative events.
D) All of the above.

Question

Quizplus · Accepted Answer

The auditors may change the preliminary judgment about materiality if they decide it was too large or too small based on additional information discovered during the audit. Additionally, client circumstances may have changed due to qualitative events such as management changes or unexpected financial results, which could also lead to a change in the auditors' judgment about materiality. Therefore, all of the above can be reasons for a change in the auditors' preliminary judgment about materiality.

Which of the Following Is a Reason That the Auditors