Applying materiality in practice is:
A) based on experience.
B) fairly simple.
C) straightforward.
D) different for each audit

Question

Quizplus · Accepted Answer

Applying materiality in practice is different for each audit as it depends on the nature, size, and complexity of the entity being audited as well as the auditor's professional judgment and experience. While there are standard guidelines and thresholds for determining materiality, they may not apply in all cases and need to be adjusted based on the specific circumstances of the engagement. Therefore, materiality is a subjective, rather than an objective, concept in auditing.

Applying Materiality in Practice Is