If materiality judgments change during the audit opinion formulation process,what happens to previous audit decisions that were based on the evidence obtained using the initial materiality setting?
A)The auditor reassesses those previous decisions.
B)The auditor repeats all audit procedures performed prior to the change in materiality judgments.
C)The auditor modifies the audit opinion to note the change in materiality judgements.
D)No action is required.

Question

Quizplus · Accepted Answer

If materiality judgments change during the audit opinion formulation process, the auditor needs to reassess previous decisions made based on the initial materiality setting. The auditor needs to determine whether any misstatements previously considered immaterial based on the old materiality threshold are now material based on the new threshold. Therefore, the auditor needs to revise the audit procedures or audit opinion to reflect the revised materiality level.

If Materiality Judgments Change During the Audit Opinion Formulation Process,what