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

Solution

Harshit Agarwal answered on May 05 2021
21 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...

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