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.