The size of the account (materiality)influences,but does not totally dictate,whether substantive testing should be performed.`

Question

Quizplus · Accepted Answer

The size of the account is an important factor in determining the extent of substantive testing that should be performed, but it is not the only factor. Other factors such as the nature of the account, the risk of material misstatement, and the results of internal controls testing should also be considered. Therefore, materiality influences, but does not totally dictate, whether substantive testing should be performed.

The Size of the Account (Materiality)influences,but Does Not Totally Dictate,whether