A materiality level of $1 000 would require more audit evidence than would a materiality level of $100 000.

Question

Quizplus · Accepted Answer

A lower materiality level means that smaller misstatements can have a material impact on the financial statements, and as a result, the auditor would need to gather more audit evidence to ensure that the financial statements are materially correct. On the other hand, a higher materiality level means that larger misstatements would be required before the financial statements are considered materially misstated, and therefore the auditor would require less audit evidence.

A Materiality Level of $1 000 Would Require More Audit