Why is it important that an auditor make a second assessment of materiality at the conclusion of the audit? Who in the audit firm is generally responsible for making these assessments?© BrainMass Inc. brainmass.com December 16, 2022, 7:48 am ad1c9bdddf
Why is it important that an auditor make a second assessment of materiality at the conclusion of the audit?
The initial materiality may be based on the level of assets or revenue in interim or year-end financial statements presented by management, including any expectations of the auditor about items that may impact a decision-maker (significant requirements, covenants and so forth). Because the auditor cannot know everything that might influence materiality at the start of the audit, the initial assessment of materiality is revisited at the end of ...
In your tutorial, I offer nine potential reasons that the level of materiality may change and indicate who is responsible for materiality judgments. 272 words plus a reference.