Which of the following will the auditor will not consider when making a materiality determination?
A) Potential default on loan covenants.
B) Changes in segment earnings or trends in earnings.
C) Factors that would affect the market's perception of future growth and cash flow for the company.
D) All of these insights would be considered.

Question

Quizplus · Accepted Answer

Auditors consider all these factors when determining materiality, as they can impact financial statement users' decisions.

Which of the Following Will the Auditor Will Not Consider