alleryStart learning →A common single-rule benchmark sets materiality at 5 percent of which base?
ATotal assets
BTotal revenue
COwner's equity
DPre-tax income
Answer & Solution
Correct answer: D. Pre-tax income
The single-rule list pairs 5 percent with pre-tax income, while assets, equity and revenue use smaller percentages.
Keep practising Audit Planning Strategy and Execution
Browse all Audit Planning Strategy and Execution questions for CA Final, or explore more Auditing topics.
Related questions
Working papers help third parties do what?Internal audit tests the most important controls using which approach?Working papers help show that the audit was performed in line with what?Which development lets auditors analyse entire datasets instead of samples?If liquidation becomes imminent, statements are prepared on what basis?How long is the foreseeable future usually regarded under the going concern assumption?The IAASB issues which of these?Which body sets recognised standards for internal auditors?