Why do auditors establish a preliminary judgment about materiality?
A) To determine the appropriate level of staff to assign to the audit.
B) So that the client can know what records to make available to the auditor.
C) To plan the appropriate audit evidence to accumulate and develop an overall audit strategy.
D) To finalize the control risk assessment.

Question

Quizplus · Accepted Answer

Auditors establish a preliminary judgment about materiality to plan the appropriate audit evidence to accumulate and develop an overall audit strategy. Materiality is a key factor in determining the nature, timing, and extent of audit procedures.

Why Do Auditors Establish a Preliminary Judgment About Materiality