Which of the following is an amount set by the auditor that is used to make decisions about the extent of audit procedures for a particular class of transaction, account balance, or disclosure?
A)Performance materiality
B)Planning materiality
C)Overall materiality
D)Qualitative materiality

Question

Quizplus · Accepted Answer

Performance materiality is defined as the amount or amounts set by the auditor for each materiality level that reduces to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole. It is used to make decisions about the extent of audit procedures for a particular class of transaction, account balance, or disclosure. Planning materiality is the materiality level set in planning stage while overall materiality is the materiality level set for the financial statements as a whole. Qualitative materiality is the consideration of the nature and circumstances of a misstatement in addition to its amount.

Which of the Following Is an Amount Set by the Auditor