For the audit of a for profit company, materiality should be set:
A)To 5% of profit or 1% of sales
B)By the field auditor once they begin to gather evidence.
C)By the client's board of directors who represent the shareholders.
D)Based on both quantitative and qualitative criteria.

Question

Quizplus · Accepted Answer

Materiality in an audit is determined based on both quantitative factors, like financial metrics, and qualitative factors, such as the nature of transactions or the context of the financial statements.

For the Audit of a for Profit Company, Materiality Should