Which of the following would not be a reason to lower the threshold for materiality?
A) The auditor is concerned with potential violations of debt covenants.
B) There were proposed adjusting entries to a particular account in prior years.
C) The consequences of a potential misstatement in an account balance are very high.
D) The audit team wants to limit the amount of time spent at the client's facilities.

Question

Quizplus · Accepted Answer

The audit team wanting to limit the amount of time spent at the client's facilities is not a valid reason to lower the threshold for materiality. Materiality should be determined based on the potential impact of misstatements on users of the financial statements, not on the convenience of the audit team.

Which of the Following Would Not Be a Reason to Lower