DeVry ACCT 444 Week 1-5 Complete Quizzes

the error range.
tolerable materiality.
tolerable misstatement.
Chapter 9
10. (TCO 8) Which of the following is not a correct statement regarding the allocation of the
preliminary judgment about materiality to balance sheet accounts? (Points : 3)
Auditors expect certain accounts to have more misstatements than others.
The allocation has virtually no effect on audit costs because the auditor must collect sufficient appropriate
audit evidence.
Auditors expect to identify overstatements as well as understatements in the accounts.
Relative audit costs affect the allocation.
Chapter 9
10. (TCO 8) Which of the following elements ultimately determines the specific auditing
procedures that are necessary in the circumstances to afford a reasonable basis for an opinion?
(Points : 3)
Inherent risk
Materiality
Auditor judgment
Reasonable assurance
Chapter 9
10. (TCO 8) Why do auditors establish a preliminary judgment about materiality? (Points : 3)
To determine the appropriate level of audit experience required for the work
So that the client can know what records to make available to the auditor
To plan the appropriate audit evidence to accumulate and develop an overall audit strategy
None of the above