In practice, the allocation of materiality is normally done without heavy reliance on the subjective judgment of the auditor.

Question

Quizplus · Accepted Answer

The allocation of materiality in an audit involves significant subjective judgment by the auditor, as it requires assessing the importance of misstatements in the context of the financial statements as a whole and considering the needs of the users of those statements.

In Practice, the Allocation of Materiality Is Normally Done Without