Which of the following would an auditor be most likely to use in determining the preliminary judgment about materiality?
A)The entity's annualised interim financial statements.
B)The contents of the management representation letter.
C)The results of the internal control questionnaire.
D)The anticipated sample size of the planned substantive tests.

Question

Quizplus · Accepted Answer

The auditor would most likely use the entity's annualised interim financial statements to determine the preliminary judgment about materiality. This is because materiality relates to the significance of financial information, and the auditor needs to understand the entity's financial position and performance as reflected in its financial statements to make this judgment.

Which of the Following Would an Auditor Be Most Likely