As planning materiality is decreased,the auditor should plan more work on individual accounts to.
A)Find smaller misstatements.
B)Find larger misstatements.
C)Increase the tolerable misstatement in the accounts.
D)Decrease the risk of assessing control risk too low.

Question

Quizplus · Accepted Answer

As planning materiality is decreased, the auditor should plan more work on individual accounts to find smaller misstatements. This is because smaller misstatements become more material when planning materiality is decreased, and the auditor needs to ensure that the financial statements are fairly presented even with smaller misstatements present. Therefore, the auditor would need to perform more detailed and extensive testing of individual accounts to detect these smaller misstatements.

As Planning Materiality Is Decreased,the Auditor Should Plan More Work