13. Judgements about materiality are made in the light of surrounding circumstances and are affected by:

(a) The auditor's perception of the financial information needs of users of the financial statements.

(b) Both the auditor's perception of the financial information needs of users of the financial statements, the size or nature of a misstatement.

(c) The size or nature of a misstatement.

(d) The company's control environment.



















Ans : (b) Both the auditor's perception of the financial information needs of users of the financial statements, the size or nature of a misstatement.