MCQ AUD 3.2 Flashcards
1
Q
In the planning stage
A
Auditor asses the risk of material misstatements in financial statement accounts. Based on this assessment the auditor plans the audit procedure to provide reasonable assurance that material misstatements in the financial accounts is detected. additionally items may come to the auditors attention that needs extension of audit test
2
Q
Concept of materiality
A
According to U.S supreme court information is material if there is substantial likeliehood that the information would be viewed by a reasonable investor as having significantly altered the total mix of information.
