Auditors often set performance materiality at a low level for accounts in the capital acquisition and repayment cycle because it is usually possible to completely audit the account balance and each of the transactions in these accounts.

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Auditors set performance materiality at a low level for accounts in the capital acquisition and repayment cycle because these accounts typically involve fewer transactions, making it feasible to audit them thoroughly and ensure accuracy.

Auditors Often Set Performance Materiality at a Low Level for Accounts