Which of the following is an amount set by the auditor that is used to make decisions about the extent of audit procedures for a particular class of transaction, account balance, or disclosure?

a. performance materiality

b. planning materiality

c. overall materiality

d. qualitative materiality

which of the following best describes the concept of audit risk?

a. the risk of the auditor being sued because of association with an audit client

b. the risk of the auditor will provide an unqualified opinion on financial statements that are in fact materially misstated.

c. the overall risk that a material misstatement exists in the financial statements

d. the risk the auditors use audit procedures that are inappropriate