During the audit of XYZ Ltd the auditor found a misstatement that equated to 7% of the base amount.Based on historical practice, this amount is deemed to be:
A)a matter of professional judgement whether it is considered material.
B)material.
C)not material.
D)none of the above.

Question

Quizplus · Accepted Answer

Materiality is often a matter of professional judgment, and while 7% is significant, the auditor must consider the context and other qualitative factors to determine materiality.

During the Audit of XYZ Ltd the Auditor Found a Misstatement