3.2 - Review of Materiality Flashcards
(4 cards)
1
Q
How often must the level of materiality be reviewed?
A
Constantly as the audit progresses
2
Q
What is the first reason changes to the level of materiality may be required?
A
Draft financial statements are altered (due to material misstatement) and therefore overall materiality changes
3
Q
What is the second reason changes to the level of materiality may be required?
A
External factors may cause changes in risk estimates
4
Q
What are such changes caused by?
A
Misstatements found during testing
