The determination of performance materiality is _________________and involves the exercise of professional judgment.
A)not a simple mechanical calculation
B)a simple mechanical calculation
C)a simple manual calculation
D)a mechanical calculation that includes solving for derivatives

Question

Quizplus · Accepted Answer

Performance materiality is not a simple mechanical calculation and requires professional judgment. It involves assessing the risk of material misstatement, considering the size and nature of the account balance, and other relevant factors.

The Determination of Performance Materiality Is _________________And Involves the Exercise