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IIA Exam IIA-CFSA Topic 10 Question 45 Discussion

Actual exam question for IIA's IIA-CFSA exam
Question #: 45
Topic #: 10
[All IIA-CFSA Questions]

Not all misstatements will be material enough to affect the fair presentation of the financial statement. A material misstatement is one that the auditors determine would change or influence the option of a reasonable person relying on the financial statements for information. Ultimately, auditors must exercise judgment to assess materiality based on the qualitative nature of the misstatements and their quantitative extent. Materiality is also based on auditors' assessment of control risk levels in the organization. The following factors may influence the auditors' assessment of control risk EXCEPT:

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Suggested Answer: D

Contribute your Thoughts:

Krissy
5 months ago
That makes sense, Delfina. Assignment of responsibility is definitely a factor in assessing control risk levels.
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Delfina
6 months ago
I would go with C) Assignment of responsibility and delegation of authority. It seems more related to control risk levels.
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Margurite
6 months ago
I think you're right, Krissy. Management's awareness of laws and regulations doesn't directly influence control risk levels.
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Krissy
6 months ago
I believe the answer is A) Management's awareness or lack of awareness of applicable laws and regulations.
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Delfina
6 months ago
I agree, materiality can really impact the decision-making process for users of financial statements.
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Margurite
6 months ago
I think this question is quite tricky. Materiality is such an important concept in auditing.
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