A(an)______________ is an amount set by the auditor that is less than planning materiality and 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)quantitative materiality
C)qualitative materiality
D)auditing standard

Question

Quizplus · Accepted Answer

Performance materiality is an amount set by the auditor that is lower than planning materiality and is used to determine the extent of audit procedures for a particular class of transaction or account balance. This ensures that the auditor gives more attention to accounts or transactions that have a greater risk of material misstatement, while also ensuring that the overall audit risk is kept within an acceptable level. Quantitative materiality refers to the materiality level set for the financial statements as a whole, while qualitative materiality refers to the nature of a misstatement and its potential impact on the financial statements. Auditing standards describe the procedures that must be followed by the auditor during the audit.

A(an)______________ Is an Amount Set by the Auditor That Is