Planning materiality must be set when, according to ISA 320?
AAfter the report date
BBefore detailed testing
CAt a board meeting
DOnly at year-end
Answer & Solution
Correct answer: B. Before detailed testing
ISA 320 requires planning materiality to be set prior to the commencement of detailed testing.
Keep practising Completion and Review
Browse all Completion and Review questions for CA Inter, or explore more Auditing topics.
Related questions
Control risk is higher where what is poorly defined?The amended 2020 IASB materiality definition added which word to omitting and misstating?Why might a small misstatement still be material?When is materiality reassessed in practice before the report is issued?How is audit risk related to the materiality level set?Audit work after a hard close, covering the remaining months, is called what?Effective internal controls do what to the substantive work needed?The overall conclusion at audit completion relies heavily on what?