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Hi Sir Mike!
On one of the exam answers on materiality it says:
“It is not appropriate that the materiality level was determined at the planning stage of the audit but has not been reviewed or adjusted since.”
I thought it was appropriate to set materiality level at the planning stage provided they are reviewed and adjusted for accordingly during the process of the audit.
Or when is it best to set materiality level?
Thanks and hope to hear from you soon.
Regards,
KyleYou have misinterpreted this sentence: “It is not appropriate that the materiality level was determined at the planning stage of the audit but has not been reviewed or adjusted since.”
In fact, your own interpretation is exactly consistent with the quotation!
“It isn’t appropriate” says the answer
“What isn’t appropriate?” you ask
“It isn’t appropriate that the materiality levels (that were set at the stage of planning the audit) have not been reviewed or adjusted (since that planning stage)”
So now, ignoring the phrases in parentheses, we are left with:
“It isn’t appropriate that the materiality levels have not been reviewed or adjusted”
Now does it make sense?
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