If the amount of materiality decreases, the amount of audit evidence will increase.Group of answer choicesTrueFalse

The statement is False.

Explanation

When the amount of materiality decreases, it means that even smaller discrepancies will be considered significant. As a result, the auditor may not need to gather as much audit evidence to support the financial statements because lower materiality thresholds indicate less risk in the financial reporting.

In a practical sense:

• Higher materiality means the auditor can afford to overlook smaller issues, thus requiring less evidence.
• Lower materiality indicates that more items could potentially be materially misstated, but that does not directly translate to an increased need for evidence; rather, the focus shifts to ensuring that all transactions are examined for accuracy.

Therefore, the correct answer is False.