When auditors determine financial statement materiality for a given audit engagement, they should primarily base their decisions

Question:

When auditors determine financial statement materiality for a given audit engagement, they should primarily base their decisions on

a. The materiality level used by the company’s management for internal audits.

b. Users of the financial statements and their specific needs.

c. The prior year’s materiality level.

d. The risk level determined in the preliminary assessment.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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