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CFA Institute ESG-Investing Exam - Topic 8 Question 27 Discussion

Actual exam question for CFA Institute's ESG-Investing exam

Question #: 27
Topic #: 8

[All ESG-Investing Questions]

Performance materiality:

Ais usually higher than overall materiality

Bis set lower when financial controls are strong.

Ccan indicate the auditor's level of trust in a company's financial systems.

Show Suggested Answer

Suggested Answer: A

by Cristy at May 03, 2026, 11:46 PM

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Howard

2 days ago

I disagree, B) doesn't always hold true.

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Jamal

7 days ago

A) is definitely true, performance materiality is usually higher.

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Maxima

12 days ago

I feel like performance materiality is often higher than overall materiality, but that seems counterintuitive to me.

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Meaghan

2 months ago

I practiced a similar question where performance materiality was linked to the strength of financial controls, so I think it might be set lower when controls are strong.

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Tammy

2 months ago

I remember discussing how performance materiality can reflect the auditor's trust in the company's controls, but I can't recall the exact details.

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Shay

2 months ago

I think performance materiality is usually set lower than overall materiality, but I'm not completely sure.

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