Materiality at the account balance level is stated in planning an audit because:
A) some users make decisions based upon individual account balances.
B) the auditor verifies account balances in reaching an overall conclusion on the fairness of the financial statements.
C) the opinion on the fairness of the financial statements extends to the individual account balances.
D) official pronouncements have specified different levels of materiality for various financial statement items.
E) the opinion on the fairness of the financial statements extends to the individual transactions.

Question

Quizplus · Accepted Answer

Materiality at the account balance level is important because auditors assess whether individual account balances are fairly stated to form an opinion on the overall fairness of the financial statements.

Materiality at the Account Balance Level Is Stated in Planning