What materiality level is used by the auditor in

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South-Western Federal Taxation 2020: Comprehensive
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Chapter 15 / Exercise 9
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
32. What materiality level is used by the auditor in determining which line items in the financial statements are to be tested? A.Overall materiality B.Performance materiality C.Specific materiality D.Individual materiality B
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South-Western Federal Taxation 2020: Comprehensive
The document you are viewing contains questions related to this textbook.
Chapter 15 / Exercise 9
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
33. _______ is the amount set by the auditor for particular classes of transactions, account balances or disclosures for which misstatements, well though lower than overall materiality could reasonably be expected to influence the economic decisions of users of the financial statements.
34. Which of the required materiality levels is calculated by multiplying a certain percentage by the appropriate benchmark which is either an element or component of an entity's financial statements?
35. Which of the following factors are normally considered by the auditor in determining the appropriatebenchmark for the purpose of calculating overall materiality? I.Components of the entity’s financial statements II.Laws and regulations III.Nature of the entity
36. Which of the following would an auditor most likely use in determining a preliminary judgment about materiality?A.The contents of the management representation letter. B.The anticipated sample size of the planned substantive tests. C.The entity's annualized interim financial stamens. D.The results of internal control questionnaire. C
37. An auditor shall consider materiality when I.Determining the nature, timing, and extent of audit procedures II.Evaluating the effect of misstatements. .
38. It is an appraisal activity established within an entity. Its functions include, among other things, examining, evaluating, and monitoring the adequacy and effectiveness of the accounting and internal control systems.
39. Which is not a similarity between external and internal auditors?

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