What is performance materiality?
A)Amount or amounts set by the auditors at less than the materiality level for particular classes of transactions, account balances, or disclosures
B)Information or misstatements that impact a user's decision-making process for a reason other than its magnitude
C)Information or misstatements that exceed the magnitude of an auditor's preliminary materiality assessment, which is a percentage of an appropriate benchmark
D)None of these options are correct.

Question

Quizplus · Accepted Answer

Performance materiality refers to the amount or amounts set by the auditors at less than the overall materiality level for specific classes of transactions, account balances, or disclosures. This is done to reduce the risk of material misstatements and to ensure that the audit is focused on the most important areas.

What Is Performance Materiality