If auditors determine a higher planning materiality level, they will plan to gather _______ extensive audit evidence.
A)less
B)more
C)a greater proportion of
D)complex

Question

Quizplus · Accepted Answer

If auditors determine a higher planning materiality level, they will plan to gather less extensive audit evidence. This is because a higher planning materiality level means that the auditor has determined that certain misstatements or errors are not material enough to affect the overall financial statements. As a result, the auditor may choose to use sampling techniques or rely on internal controls rather than conducting a more thorough examination of every transaction or account balance.

If Auditors Determine a Higher Planning Materiality Level, They Will