Planning an audit engagement


The auditors must consider materiality in planning an audit engagement. Materiality for planning purposes is:

A.The auditors' preliminary estimate of the largest amount of misstatement that would be material to any one of the client's financial statements

B.The auditors' preliminary estimate of the smallest amount of misstatement that would be material to any one of the client's financial statements

C.The auditors' preliminary estimate of the amount of misstatement that would be material to the client's balance sheet

D.An amount that cannot be quantitatively stated since it depends on the nature of the item

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Accounting Basics: Planning an audit engagement
Reference No:- TGS069198

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