After the preliminary judgment about materiality has been established, auditors may:
A) adjust it downward only.
B) adjust it either downward or upward.
C) not adjust it.
D) adjust it upward only.

Question

Quizplus · Accepted Answer

Auditors may adjust their preliminary judgment about materiality either downward or upward as they gather more information during the audit process. This flexibility allows them to respond to new evidence or changes in circumstances.

After the Preliminary Judgment About Materiality Has Been Established, Auditors