Regardless of how the allocation of the preliminary judgement about materiality was done, when the audit is complete, the auditor must be confident that the combined errors in all accounts are:
A) less than the preliminary judgement.
B) more than the preliminary judgement.
C) less than or equal to the preliminary judgement.
D) equal to the preliminary judgement.

Question

Quizplus · Accepted Answer

Regardless of how the preliminary judgement about materiality was done, the auditor must ensure that the combined errors in all accounts are less than or equal to the preliminary judgement. This is because the preliminary judgement is established as a benchmark for the auditor to determine whether the financial statements are materially misstated or not. Therefore, it is important to stay within the limits of the preliminary judgement to achieve an acceptable level of accuracy and reliability in the audit report.

Regardless of How the Allocation of the Preliminary Judgement About