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AGA CGFM Exam - Topic 2 Question 37 Discussion

Actual exam question for AGA's CGFM exam
Question #: 37
Topic #: 2
[All CGFM Questions]

When considering materiality during the planning phase for the field work for a financial audit, the dollar threshold for materiality is determined by the

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Suggested Answer: D

by Lucy at Dec 14, 2023, 02:46 PM

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Torie
6 months ago
I thought the audit committee had a say in this too?
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Amie
6 months ago
Totally agree, collaboration is key!
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Fredric
6 months ago
Wait, are you sure it's not just the auditor?
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Flo
7 months ago
Definitely C, it's a team effort with the auditee.
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Filiberto
7 months ago
It's usually the auditor who sets that threshold.
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Janae
7 months ago
I feel like the auditee has some influence, but I can't recall if they actually determine the threshold. This is tricky!
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Fidelia
7 months ago
I’m a bit confused about whether the audit committee has a role in determining materiality. I thought it was mainly the auditor's responsibility.
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Emmanuel
7 months ago
I remember a practice question where the auditor and auditee discussed materiality together, so I might lean towards option C.
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Tonja
8 months ago
I think the auditor is the one who sets the materiality threshold, but I'm not entirely sure if they do it alone or need input from others.
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Ines
8 months ago
I'm pretty confident the answer is A - the auditor determines the materiality threshold. This is a core part of the auditor's responsibilities in the planning stage of the audit process.
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Antonio
8 months ago
Hmm, I'm a little unsure about this one. I know materiality is an important concept in auditing, but I can't quite recall the specifics of who determines the threshold. I'll have to think this through carefully.
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Emiko
8 months ago
This seems like a straightforward question about materiality in financial audits. I think the key is to remember that the auditor is responsible for determining the materiality threshold, not the auditee or the audit committee.
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Carmelina
8 months ago
Okay, I've got this. The auditor is the one who sets the materiality threshold during the planning phase of the audit. They use their professional judgment to determine the appropriate dollar amount based on the specific circumstances of the engagement.
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Loren
8 months ago
Easy peasy! The question is clearly asking if an SSH private key should never be shared, and the answer is definitely true. Private keys are called "private" for a reason - you don't want anyone else getting their hands on them.
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Martin
8 months ago
I'm a little confused by the wording here. What exactly is the difference between these cost tolerance options? I'll need to review my notes and make sure I understand the concepts before attempting to answer.
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Ilene
8 months ago
This one seems pretty straightforward. I'd go with setting the credentials as environment variables and storing them in a key management system.
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Candra
8 months ago
I think I remember that load balancing can be influenced by how the ports are configured. So maybe option B about the separate LACP port channel is worth considering.
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Aide
1 year ago
Wait, is the auditor supposed to just roll a dice to determine the materiality threshold? Seems like a risky move to me.
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Margo
12 months ago
D) audit committee.
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Stephania
12 months ago
C) auditor in consultation with the auditee.
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Sharita
12 months ago
A) auditor.
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Gail
1 year ago
C'mon, it's gotta be the auditor in consultation with the auditee. They need to work together on this, don't they?
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Chandra
1 year ago
Ooh, I bet the audit committee has the final say on this. They're the ones keeping an eye on the whole process.
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Earlean
11 months ago
It's important for the auditor to consult with the audit committee on materiality.
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Lanie
12 months ago
Yeah, they probably have the final say on the dollar threshold.
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Selma
12 months ago
I think the audit committee plays a big role in determining materiality.
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Blair
1 year ago
Hmm, I'm not sure about that. Shouldn't the auditee have a say in this? They know their business best, right?
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Dorian
11 months ago
D) audit committee.
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Laticia
11 months ago
I think it's a combination of both.
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Tamala
11 months ago
C) auditor in consultation with the auditee.
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Magda
1 year ago
A) auditor.
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Goldie
1 year ago
I think the auditor should determine the materiality threshold based on their professional judgment. After all, they're the experts in this field.
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Virgie
1 year ago
Yes, the auditor plays a crucial role in setting the materiality threshold for the financial audit.
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Thurman
1 year ago
I agree, the auditor is the one with the expertise to determine the materiality threshold.
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Dino
1 year ago
Yes, it makes sense for the auditor to use their professional judgment in setting the materiality threshold.
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Catrice
1 year ago
I agree, the auditor is the one with the expertise to determine the materiality threshold.
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Miriam
1 year ago
Actually, the auditor determines materiality in consultation with the auditee to ensure accuracy.
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Queen
1 year ago
I agree with Latanya, the auditor is responsible for determining materiality.
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Latanya
1 year ago
I think the dollar threshold for materiality is determined by the auditor.
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