Which of the following concepts of materiality is incorrect? a. Materiality is based on quantitative and non-quantitative factors. b. Materiality is a matter of professional audit judgment. c. Materiality does not apply if internal control is highly effective. d. Materiality is more closely related to the fieldwork and reporting standards than to general standards

Which of the following concepts of
materiality is incorrect?
a. Materiality is based on quantitative and
non-quantitative factors.
b. Materiality is a matter of professional
audit judgment.
c. Materiality does not apply if internal
control is highly effective.
d. Materiality is more closely related to the
fieldwork and reporting standards than to
general standards
by

1 Answer

Answer :

Materiality does not apply if internal
control is highly effective
by

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Which of the following is least likely included in an auditor’s inquiry of management while obtaining information to identify the risks of material misstatement due to fraud? a. Are financial reporting operations controlled by and limited to one location? b. Does it have knowledge of fraud or suspect fraud? c. Does it have programs to mitigate fraud risks? d. Has it reported to the audit committee the nature of the company's internal control?

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Which of the following concepts is most useful in assessing the scope of an auditor's program relating to various accounts? a. Attribute sampling b. Management fraud c. Materiality d. The reliability of information

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Last Answer : The CPA’s conclusion provides a level of assurance about the subject matter.