Which of the following statements are true?
A)The auditing standards require specific percentages be applied as benchmarks in setting planning materiality.
B)For both private and publicly traded companies, the primary users of financial statements are the stockholders.
C)Auditors rely heavily on their professional judgment in setting planning materiality
D)Audit firms do not vary in the method they use to set planning materiality in the risk assessment phase.

Question

Quizplus · Accepted Answer

The auditing standards do not require specific percentages be applied as benchmarks in setting planning materiality. For publicly traded companies, the primary users of financial statements are shareholders, but for private companies, it may be owners, lenders, or other stakeholders. Auditors rely heavily on their professional judgment in setting planning materiality based on factors such as the company's size, complexity, and risks. Different audit firms may vary in the method they use to set planning materiality in the risk assessment phase.

Which of the Following Statements Are True