The auditor will allocate more materiality to accounts with a(n):
A) high chance of misstatements and that are difficult to audit.
B) high chance of misstatements but that are easy to audit.
C) low chance of misstatements but that are difficult to audit.
D) low chance of misstatements and that are easy to audit.
E) average chance of misstatements and that are easy to audit.

Question

Quizplus · Accepted Answer

Materiality is allocated more to accounts with a high chance of misstatements and that are difficult to audit because these factors increase the risk of material misstatement, necessitating closer scrutiny.

The Auditor Will Allocate More Materiality to Accounts with A(n)