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9) Which one of the following statements does NOT apply to the preliminary assessment of materiality? A) It is the maximum amount by which
9) Which one of the following statements does NOT apply to the preliminary assessment of materiality? A) It is the maximum amount by which the auditor believes the statements could be misstated and still NOT affect the decisions of reasonable users. B) It is a matter of auditor judgement. C) It is a professional opinion, and it may NOT change during the engagement. D) Auditors decide on the combined amount of misstatements in the financial statements that they would consider material early in the audit, when they are developing the overall strategy for the audit. 10) Which one of the following statements is NOT correct? A) Normally, the most important base used as the criterion for deciding materiality is total assets. B) Qualitative factors as well as quantitative factors affect materiality. C) Materiality is a relative rather than an absolute concept. D) Given equal dollar amounts, fraud is usually considered more important than errors. I 11) Why might an auditor revise the preliminary assessment of materiality? A) because client circumstances may have changed B) because of qualitative events C) because the auditor determined preliminary assessment of materiality before year-end D) all of the above 12) Materiality is best described as which type of concept? A) qualitative B) quantitative C) relative D) relevant
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