Materiality is assessed during the risk assessment phase of every audit.

Question

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Materiality is a key concept in auditing, and it is evaluated during the risk assessment phase of every audit. Materiality refers to the level of significance or importance of a financial misstatement or error, and it is used to determine the level of detail and scrutiny required for the audit. The auditor must evaluate materiality both quantitatively and qualitatively in order to assess the risks of material misstatements in the financial statements.

Materiality Is Assessed During the Risk Assessment Phase of Every