Which of the following would an auditor most likely use in determining the auditor's preliminary judgment about materiality?

Question

Quizplus · Accepted Answer

Choice "B" is correct. The auditor's preliminary judgment about materiality is generally based on either annualized interim financial statements or annual financial statements from a prior period. Choice "A" is incorrect. The anticipated sample size for substantive tests is irrelevant in making a preliminary judgment about materiality. Choice "C" is incorrect. The results of the internal control questionnaire would be relevant for making a preliminary assessment of control risk; however, these results are irrelevant for determining a preliminary level of materiality. Choice "D" is incorrect. The management representation letter is obtained at the end of the audit and would not be available when preliminary assessments of materiality are made during planning.

Which of the Following Would an Auditor Most Likely Use