If a company's net income varies significantly from year to year, the auditor might consider using an average of the net income from the prior three to five years as the materiality benchmark.
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Q1: Auditors make materiality assessments to help in
Q2: In performing substantive analytical procedures, the threshold
Q4: The significant judgments of "Assets of Held-for-Sale
Q5: If the auditor believes that misstatements aggregating
Q6: Planning materiality helps the auditor determine the
Q7: Materiality judgments are made in light of
Q8: The inventory account does not require any
Q9: Existing professional guidance notes that auditors must
Q10: The significant judgments related to "deferred income
Q11: The auditor considers materiality only at the
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