Audit Materiality and Performance Materiality
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SOLVED: Auditors make materiality judgments during the planning phase of the audit in order to ensure they ultimately gather sufficient evidence during the audit to provide reasonable assurance that the financial statements are free of material misstatements. The lower the materiality threshold that an auditor has for an account balance, the more evidence the auditor must collect. Auditors often use quantitative benchmarks such as 1% of total assets or 5% of net income to determine whether misst
SOLVED: Auditors make materiality judgments during the planning ph…
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