The combination of performance materiality and the audit risk model factors does not affect the auditor's planned audit evidence.

Question

Quizplus · Accepted Answer

The combination of performance materiality and the audit risk model factors will affect the auditor's planned audit evidence. The auditor will need to consider the level of materiality when deciding on the amount and type of evidence to gather. Additionally, the audit risk model factors (inherent, control, and detection risk) will impact the level of evidence needed to reduce audit risk to an acceptably low level.

The Combination of Performance Materiality and the Audit Risk Model