Overall materiality is used to identify and assess risks,to design audit procedures to be done in response to the assessed risks,and to evaluate the results of sampling procedure

Question

Quizplus · Accepted Answer

Overall materiality is primarily used to determine the nature, timing, and extent of audit procedures that should be performed to reduce audit risk to an acceptably low level. It is not used to identify and assess risks; that is the role of risk assessment procedures.

Overall Materiality Is Used to Identify and Assess Risks,to Design