In planning the audit,the auditor makes decisions about the size of misstatements that will be considered material.These decisions allow the auditor to
A)determine the nature,timing,and extent of inherent risk assessment procedures
B)identify and assess the risk of misstatement
C)determine the nature,timing,and extent of audit procedures
D)establish an amount below which misstatements will always be evaluated as immaterial
E)C and D

Question

Quizplus · Accepted Answer

Determining the size of misstatements that will be considered material helps the auditor to decide on the nature, timing, and extent of audit procedures (C) and to establish a threshold below which misstatements are deemed immaterial (D).

In Planning the Audit,the Auditor Makes Decisions About the Size