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The audit report provides reasonable assurance that the financial statements are free from materal misstatements. The auditor is put in a difficult situation because maleriality
The audit report provides reasonable assurance that the financial statements are free from materal misstatements. The auditor is put in a difficult situation because maleriality is defined from a user's Viewpoint, but the auditor must assess matenality in planning the audit to ensure that sullicient audit work is performed to detect material misstatements.
1. Define materiality as used in auditing
2. Briefly discuss the ditterence between a "quantitative assessment of materiality and a
*qualitative" assessment of materialitv.
Give an example of each
3. Due to qualitative factors certain types
of misstatements are likely to be more important to users than others
- even if the dollar amounts are
the same. Identify two qualitative factors that might significantly affect an auditor materiality judgment and give an example of each
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