Preliminary judgments about materiality are often changed during the course of the engagement.

Question

Quizplus · Accepted Answer

Preliminary judgments about materiality are based on the auditor's understanding of the entity and its environment at an early point in the audit. As the audit progresses and the auditor obtains additional information, these preliminary judgments may change, driving changes in the audit approach, scope, and emphasis.

Preliminary Judgments About Materiality Are Often Changed During the Course