Auditors have to make judgments concerning materiality on every audit. Since the auditing standards give no formal guidance for how to determine materiality, auditors must rely on their own...

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Auditors have to make judgments concerning materiality on every audit. Since the auditing standards give no formal guidance for how to determine materiality, auditors must rely on their own experience.


1. Determine at least three qualitative factors that affect the auditor's judgment


2. Please read and answer the rebuttal in 4 to 5 sentences




An auditor needs to make a judgment concerning materiality on each review. Relevance, reliability, and completeness are some of the factors that can affect the auditor’s judgment.


Relevance, material data impacts the financial choices of the clients and is along these lines pertinent to their necessities.


Reliability, Omission, or error of a significant snippet of data debilitates the client’s capacity to settle on the right choices assumed the premise of budget reports subsequently influencing the dependability of data.


Completeness, the information contained in the budget reports must be finished in every material regard to introducing a valid and reasonable perspective on the issues of the organization.


Also, the auditor will study and understand the industry regulations and in house policies and procedures of the company and business to come to a conclusion about the judgment.


Answered Same DayMay 04, 2021

Answer To: Auditors have to make judgments concerning materiality on every audit. Since the auditing standards...

Harshit answered on May 05 2021
139 Votes
Materiality has to be defined by the auditor during the process of the audit. The materiality level may vary as the audit is conducted and based on the findings of such Audit and the level of misstatement detected will affect the original materiality level. Level of materiality should be modified according to the misstatements detected. The level of materiality should be e estimated by the auditor based on the size of the company. The initial materiality level is completely based on the judgment of the auditor in case the auditor is auditing the company for the first time. The altar had previously conducted the audit of the company he would have the idea about...
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