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IIA-CFSA · Question #63

For Example one exception in 1000 cases is probably not the reason enough to recommend overhauling the entire system, although the final answer must be derived from the context and the condition of…

The correct answer is C. Both of these. A manager of a very controversial program may have stolen only $200, but the controversy and public accountability aspects may make the 200 significant, where it would not be material private sector financial statement opinion audit. It means: meanings in the public and private…

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Question

For Example one exception in 1000 cases is probably not the reason enough to recommend overhauling the entire system, although the final answer must be derived from the context and the condition of the related control system. Which one of the following statements is clearly supported by this example?

Options

  • AAuditors should be aware that the concepts of materiality and significance take on different
  • BDuring the planning and reporting processes, government auditors may need to consider
  • CBoth of these
  • DNone of these

How the community answered

(27 responses)
  • A
    15% (4)
  • B
    4% (1)
  • C
    74% (20)
  • D
    7% (2)

Explanation

A manager of a very controversial program may have stolen only $200, but the controversy and public accountability aspects may make the 200 significant, where it would not be material private sector financial statement opinion audit. It means: meanings in the public and private sector qualitative factors such as the visibility of the program under audit, or the newness of the program or changes in its condition

Topics

#audit materiality#significance#exception handling#audit reporting

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