Which of the following statements is correct?
A)In compliance audits, an error is considered material if it results in a misstatement in the financial report of more than 10 per cent of net profit.
B)In compliance audits, control deviations are considered material if the control has not been followed in more than 10 per cent of sample transactions.
C)In compliance audits, materiality should be determined by reference to the users of the auditor's report and their information needs.
D)Compliance audits are concerned only with deviations from legislation.

Question

Quizplus · Accepted Answer

Materiality in compliance audits should be determined by the users of the auditor's report and their information needs. The other statements are incorrect as they provide inaccurate thresholds or limitations for materiality, or make overly broad or narrow assertions about compliance audits.

Which of the Following Statements Is Correct