By setting a lower planning materiality level, an auditor
A) decreases the quality and quantity of evidence that needs to be gathered.
B) does not change the audit strategy they use.
C) increases the quality and quantity of evidence that needs to be gathered.
D) can be certain that they will detect all instances of fraud that have occurred.

Question

Quizplus · Accepted Answer

Setting a lower planning materiality level means that the auditor has determined a more significant level of materiality for the financial statements, requiring greater precision in the audit work. Therefore, the auditor would need to gather more and higher quality evidence to meet this standard. It does not guarantee that all instances of fraud will be detected.

By Setting a Lower Planning Materiality Level, an Auditor