Day: September 8, 2025

Which ONE of the following are auditors not helped by in setting a preliminary materiality threshold?

Select ONE answer:

1. How many items to examine
2. Whether to use sampling
3. What level of misstatement is likely to lead to the auditor not being able to give an unmodified opinion
4. What audit staff should be assigned to the audit

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > What audit staff to assign to the audit would depend more on the risks associated with the engagement than the level of materiality.

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