In planning the audit,the auditor makes decisions about the size of misstatements that will be considered material.These decisions do not allow the auditor to
A)determine the nature,timing,and extent of audit procedures
B)identify and assess the risk of material misstatement
C)determine the nature,timing,and extent of risk assessment procedures
D)establish an amount below which misstatements will always be evaluated as immaterial

Question

Quizplus · Accepted Answer

The auditor's decisions about materiality do not affect the nature, timing, and extent of audit procedures or risk assessment procedures. These decisions do, however, establish an amount below which misstatements will always be evaluated as immaterial. The identification and assessment of the risk of material misstatement is also a separate decision and is not impacted by the determination of materiality thresholds.

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