Statements on Auditing Standards provide detailed, objective guidance on how auditors are to establish a preliminary materiality level, thus eliminating the need for subjective auditor judgment in this task.

Question

Quizplus · Accepted Answer

While Statements on Auditing Standards provide guidance on how auditors should consider materiality in the audit, they do not eliminate the need for auditor judgment to establish a preliminary materiality level. Auditors are still required to exercise professional judgment in determining what level of misstatement would be considered material in the specific circumstances of the audit engagement.

Statements on Auditing Standards Provide Detailed, Objective Guidance on How