Which of the following would not be a reason to lower the threshold for materiality?

Which of the following would not be a reason to lower the threshold for materiality?




a. The auditor is concerned with potential violations of debt covenants.
b. There were proposed adjusting entries to a particular account in prior years.
c. The consequences of a potential misstatement in an account balance are very high.
d. The audit team wants to limit the amount of time spent at the client's facilities.






Answer: D


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