Allocating the preliminary judgement about materiality to segments of the financial statements is necessary because:
A) it is required by the Code of Ethics for Professional Accountants.
B) evidence is accumulated by segments rather than for the financial statements as a whole.
C) evidence is accumulated for the financial statements as a whole so the materiality doesn't apply to them.
D) it is required by the Corporations Act.

Question

Quizplus · Accepted Answer

Allocating the preliminary judgement about materiality to segments of the financial statements is necessary because evidence is accumulated by segments rather than for the financial statements as a whole. This helps in identifying the areas of financial statements that require more attention and resources. However, it is not required by the Code of Ethics, the Corporations Act or any other professional standard.

Allocating the Preliminary Judgement About Materiality to Segments of the Financial