If the auditor approaches the audit of the accounts in a sequential manner, the findings of the audit of accounts audited earlier can be used to revise the performance materiality established for accounts audited later.

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By revising the performance materiality based on the findings of accounts audited earlier, the auditor can better tailor their procedures for accounts audited later and ensure the audit is more efficient and effective. This is a common practice in audit planning and execution.

If the Auditor Approaches the Audit of the Accounts in a Sequential