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Materiality determined during planning is intended to:
ABe a fixed number for the next five years
BBe ignored once execution begins
CBe revised if circumstances change or new information arises
DBe communicated to all customers
Answer & Solution
Correct answer: D. Be communicated to all customers
1. SA 320 requires the auditor to revise materiality when needed.
2. Materiality is a planning judgement that must remain current.
3. Communication is internal (audit team) and to TCWG, not to customers.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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