Typically 5-10% for net income, lower percentage for larger bases such as assets or revenues High risk Low o Low Risk High (less evidence; less assurance) @2000 Prentice hall.Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Typically 5 - 10% for net income, lower percentage for larger bases such as assets or revenues High Risk Low % Low Risk High % (less evidence; less assurance)
Materiality/ Evidence Relation Increase in materiality L ess evidence required Arens, Loebbecke; Auditing, 8/E @2000 Prentice hall.Inc
Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Materiality / Evidence Relation Increase in materiality Less evidence required