Auditing standards ________ that the basis used to determine the preliminary judgment about materiality be documented in the audit files.
A) permit
B) do not allow
C) require
D) strongly encourage

Question

Quizplus · Accepted Answer

Auditing standards require that the basis used to determine the preliminary judgment about materiality be documented in the audit files. This documentation helps the auditor and others understand the rationale for materiality decisions and is an important part of the audit trail.

Auditing Standards ________ That the Basis Used to Determine the Preliminary