Holding everything else constant, as the auditor's evaluation of materiality_______, the auditor is looking to obtain a more precise conclusion about the financial statements.The _______precision of the audit will cause the auditor to perform more extensive audit procedures.
A)decreases, increased
B)increases, decreased
C)increases, increased
D)decreases, decreased

Question

Quizplus · Accepted Answer

When the auditor's evaluation of materiality decreases, it means the auditor is concerned with smaller amounts potentially affecting the financial statements' accuracy. This leads to seeking a more precise conclusion, requiring increased precision in the audit, which in turn necessitates more extensive audit procedures.

Holding Everything Else Constant, as the Auditor's Evaluation of Materiality_______