If new information comes to light that would cause the auditor to establish a different level of planning materiality, then the auditor _______.
A)should examine the information and make adjustments to materiality as needed
B)issue a qualified opinion as part of the audit report
C)follow the auditing standards that recommend an appropriate percentage of total assets as a benchmark for planning materiality for all companies
D)have management of the company select the appropriate benchmark for planning materiality

Question

Quizplus · Accepted Answer

If new information comes to light that would cause the auditor to establish a different level of planning materiality, the auditor should examine the information and make adjustments to materiality as needed. This is in line with auditing standards and the auditor's responsibility to obtain sufficient evidence to support their opinion. The auditor cannot simply rely on a benchmark or have management select the appropriate benchmark without considering the specific circumstances of the engagement.

If New Information Comes to Light That Would Cause the Auditor