Which of the following would an auditor most likely use in determining the auditor's planning materiality?
A) The anticipated sample size for planned substantive procedures.
B) The entity's annualized interim (i.e. quarterly) financial statements.
C) The results of the internal control questionnaire.
D) The contents of the management representation letter.

Question

Quizplus · Accepted Answer

The entity's annualized interim financial statements would provide the most relevant information for determining planning materiality as they represent a significant portion of the financial statements and can provide insight into the company's financial health and prospects. The anticipated sample size for planned substantive procedures, results of the internal control questionnaire, and contents of the management representation letter may be considered in determining planning materiality, but they are not the most relevant factors.

Which of the Following Would an Auditor Most Likely Use