Preliminary assessment of materiality is the combined amount of misstatements in the financial
statements that auditors would consider material early in the audit.

Question

Quizplus · Accepted Answer

Preliminary assessment of materiality is the initial determination of the amount of misstatements in the financial statements that would be considered material by the auditors. This assessment is conducted before the audit begins and helps the auditors to plan and perform their audit procedures in order to detect significant misstatements.

Preliminary Assessment of Materiality Is the Combined Amount of Misstatements