In planning the audit, the auditor should assess materiality at two levels:
A) the preliminary level and the final level.
B) the company level and the divisional level.
C) the financial report level and the account balance level.
D) the account balance level and the transaction level.

Question

Quizplus · Accepted Answer

Materiality is assessed at two levels during audit planning: the financial report level, which affects users' decisions as a whole, and the account balance level, which involves specific components of the financial statements.

In Planning the Audit, the Auditor Should Assess Materiality at Two