Which one of the following statements does NOT apply to the preliminary assessment of materiality?
A) It is the maximum amount by which the auditor believes the statements could be misstated and still NOT affect the decisions of reasonable users.
B) It is a matter of auditor judgement.
C) It is a professional opinion, and it may NOT change during the engagement.
D) Auditors decide on the combined amount of misstatements in the financial statements that they would consider material early in the audit, when they are developing the overall strategy for the audit.

Question

Quizplus · Accepted Answer

The statement "It is a professional opinion, and it may NOT change during the engagement" is incorrect. Materiality is a preliminary assessment that may be revised as the audit progresses and new information becomes available. Therefore, it is not a fixed or final opinion.

Which One of the Following Statements Does NOT Apply to the Preliminary