All else being equal, as the level of materiality decreases, the amount of evidence required will:
A) remain the same.
B) increase.
C) decrease.
D) change in an unpredictable fashion.
E) fluctuate randomly.

Question

Quizplus · Accepted Answer

As the level of materiality decreases, auditors are concerned with smaller items because they could now be material. Therefore, they will require more evidence to ensure the financial statements are free of material misstatement.

All Else Being Equal, as the Level of Materiality Decreases