chap 9 relationship of risk and materiality to audit evidence Flashcards
1
Q
risk and materiality together measure what?
A
the uncertainty of amounts of a given magnitude
2
Q
T/F the concepts of materiality and risk in auditing are closely related and inseparable
A
T
3
Q
risk is a measure of ____ , whereas materiality is a measure of ____ or ____
A
uncertainty magnitude or size
4
Q
performance materiality does not affect any of the 4 risks and the risks have no effect on performance materiality but together they determine what?
A
planned evidence
5
Q
performance materiality is directly/inversely related to planned audit evidence
A
inversely
6
Q
T/F performance materiality does not affect any of the 4 risks and the risks have no effect on performance materiality
A
T
