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Questions and Answers
Which of the following would an auditor not consider when setting a preliminary materiality threshold?
Which of the following would an auditor not consider when setting a preliminary materiality threshold?
- The size and experience of the audit team (correct)
- Sample sizes
- What level of misstatement is likely to lead to the auditor not being able to give an unmodified opinion
- Whether to use sampling
What is a factor that an auditor would consider in setting a preliminary materiality threshold?
What is a factor that an auditor would consider in setting a preliminary materiality threshold?
- The level of detail in the financial statements
- The size of the audited company's annual revenue (correct)
- The number of shareholders in the company
- Whether to use sampling
Which of the following is a consideration when deciding whether to use sampling in an audit?
Which of the following is a consideration when deciding whether to use sampling in an audit?
- The company's advertising budget
- The auditor's personal preference
- The number of employees in the company
- The complexity of the company's internal controls (correct)
