One way an auditor gauges how much audit work and testing needs to be performed is through evaluating materiality and seeking reasonable assurance about the nature of the information or process.What is key to determining materiality during an audit?
A)determining if material errors exist in the information or processes undergoing audit
B)the testing of records,account balances,and procedures on a sample basis
C)determining what is and is not important given a set of circumstances is primarily a matter of judgment
D)none of the above

Question

Quizplus · Accepted Answer

Materiality is ultimately a matter of professional judgment and is dependent on the particular circumstances of the engagement. The auditor must consider factors such as the size and nature of the organization, the intended users of the financial statements, and the specific risks associated with the engagement. While material errors can certainly impact the determination of materiality, they are not the sole determining factor. Similarly, while testing is important in determining the extent and nature of audit work, it is not directly related to the determination of materiality.

One Way an Auditor Gauges How Much Audit Work and Testing