After the auditor determines materiality for the company,the auditor can determine
A)the accounts where maximum audit testing is required
B)the level of misstatement necessary for the misstatement to be considered material
C)the value of clear and accurate financial disclosures
D)the auditor's responsibility to outside users of financial statements to provide financial information consistent with accounting regulations

Question

Quizplus · Accepted Answer

Materiality determines the level of misstatement that is considered significant in the context of the financial statements. This helps the auditor determine the level of audit testing required for each account to ensure that material misstatements are detected. Options A, C, and D are not directly related to the determination of materiality.

After the Auditor Determines Materiality for the Company,the Auditor Can