What is considered material by you may not be material from your fellow auditors’ perspective. You will explore how to determine what materiality levels are so that your audit team is in agreement.
Throughout an audit, for all purposes, the material amount is defined as $500,000.
Do you think that one materiality amount can be set for an entire company?
If so, is $500,000 too high or too low?
If you disagree, what would be your suggestion for determining materiality? Explain your reasoning.
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