Performance materiality is a materiality level where the auditor believes that the errors below that level would not, even when aggregated with all other misstatements, be material to the financial report.

Question

Quizplus · Accepted Answer

Performance materiality is set by the auditor at less than the materiality level for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements.

Performance Materiality Is a Materiality Level Where the Auditor Believes