In determining the materiality levels, if mostly depends on the auditor's professional skepticism.Group of answer choicesTrueFalse

Answer

This statement is True.

Explanation: Materiality in auditing is essentially about determining the significance of financial information in the context of an audit. The auditor's professional skepticism plays a critical role in this determination because it influences their judgment regarding what is considered material. Auditors must critically assess all evidence, be alert to conditions that may indicate possible misstatement, and maintain a questioning mind. This professional skepticism helps ensure that the auditor does not overlook significant issues that could impact financial statements, thereby influencing the materiality levels they set during the audit process. Overall, an auditor's skepticism helps ensure that materiality levels are appropriately determined to reflect the needs of users of financial statements accurately.