The use of performance materiality should reduce the ________________ and/or undetected misstatements in the financial statements is greater than materiality for the financial statements as a whole.
A)probability that the sum of immaterial
B)sum of the probabilities of material
C)difference between the material
D)the product of probabilities for material

Question

Quizplus · Accepted Answer

Performance materiality is used to reduce the risk that the aggregate of uncorrected and undetected misstatements exceeds the materiality level for the financial statements as a whole. It does this by setting a lower threshold for the audit procedures, thereby aiming to catch smaller misstatements that, in aggregate, could be significant.

The Use of Performance Materiality Should Reduce the ________________ And/or