Task: Below are five questions that all need to be based on the United States.
Question 1. Why might planning materiality differ from the materiality level used in evaluating audit findings?
Question 2. What official quantitative guidelines exist for financial statement materiality? Identify one of the quantitative guidelines commonly used in practice.
Question 3. Explain how auditors evaluate the materiality of misstatements found in the process of collecting audit evidence.
4. What are analytical procedures? Identify one use of analytical procedures in an audit engagement. Which one(s) are required for all audits?
Question 5. How can analytic procedures assist the auditor in audit planning?