Determining materiality requires professional judgment.

Name: Determining materiality requires professional judgment.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

Materiality is a matter of professional judgment and requires the auditor to consider the nature and amount of misstatements or omissions in the financial statements that would affect the judgment of a reasonable person relying on the financial statements. Therefore, the auditor's professional judgment is critical in determining materiality.

Determining Materiality Requires Professional Judgment