When a client fails to follow GAAP, the audit report can be unmodified, qualified, or adverse depending on the materiality. What factors affect materiality that an auditor should consider?
A) the dollar amount in comparison to a base
B) if the misstatement can be measured
C) the nature of the item
D) All the above are factors an auditor should consider regarding materiality.

Question

Quizplus · Accepted Answer

All the factors listed (dollar amount in comparison to a base, if the misstatement can be measured, and the nature of the item) should be considered by an auditor when determining materiality. Therefore, the best choice is D.

When a Client Fails to Follow GAAP, the Audit Report