Question
If you as the auditor are auditing revenue, can the audit team assign a materiality level for revenue that differs from the already established materiality
If you as the auditor are auditing revenue, can the audit team assign a materiality level for revenue that differs from the already established materiality level for the financial statements as a whole? If no simply state no. If yes, why is this allowed?
The auditor should determine tolerable misstatement at an amount or amounts that reduce to an appropriately low level the probability that the total of uncorrected and undetected misstatements would result in material misstatement of the financial statements. Briefly explain what is going on here in your own words.
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