Which of the following is not true about materiality judgment?
A)The auditor's consideration of materiality is influenced by the auditor's perception of the needs of users of financial statements.
B)The auditor considers materiality only in relation to classes of transactions,account balances,and disclosures.
C)Materiality judgments make sure that the auditor gathers sufficient evidential matter to obtain reasonable assurance about whether the financial statements are free of material misstatement.
D)Materiality decisions differ from one audit client to another.

Question

Quizplus · Accepted Answer

This statement is not true because the auditor also considers materiality in relation to the overall financial statements. Materiality judgments are made to ensure that the auditor gathers sufficient evidential matter to obtain reasonable assurance about whether the financial statements are free of material misstatement. Materiality decisions differ from one audit client to another and are influenced by the needs of the users of financial statements.

Which of the Following Is Not True About Materiality Judgment