Social Studies, 01.11.2019 03:31 cailinhannon4828
An auditor typically sets the initial amount of overall materiality using a quantitative approach. then the auditor considers qualitative items, such as expectations relating to analysts' eps forecasts, financial statement items on which users will focus their attention, nature of the client and industry, size of the client, the nature of the client's financing, and volatility of the benchmark. how might these qualitative factors influence the overall materiality that the auditor will use in planning the audit? assume that client a has a number of these qualitative factors noted above, while client b does not (therefore, client a is riskier than client b). how might this information affect planning materiality?
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An auditor typically sets the initial amount of overall materiality using a quantitative approach. t...
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