Australian auditing standards provide detailed, objective guidance on how auditors are to establish a preliminary materiality level, thus eliminating the need for subjective auditor judgement in this task.

Question

Quizplus · Accepted Answer

Australian auditing standards acknowledge that establishing a preliminary materiality level requires professional judgement, and provide guidance on factors to consider in exercising that judgement, but do not provide a one-size-fits-all formula or quantitative threshold. Therefore, some level of subjectivity is inherent in the process.

Australian Auditing Standards Provide Detailed, Objective Guidance on How Auditors