Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

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What factor is least likely to be considered by an auditor when reporting on a single financial statement?

The purpose of the financial statement.
The intended users of the financial statement.
The opinion rendered on the complete financial statements.
The materiality for the financial statements as a whole.

The correct answer is: The materiality for the financial statements as a whole.

When an auditor is reporting on a single financial statement, they primarily focus on the specific details and context of that individual statement, which can differ from the overall financial statements taken as a whole. The materiality of the financial statement in isolation is assessed based on its relevance and significance to users. However, factors such as the purpose of the financial statement and the intended users carry greater weight because they directly influence how the financial statement is interpreted and used. Since the auditor's work is more concentrated on the individual statement, how it fits into the overall financial statements is less pivotal in this context. For instance, when determining materiality, auditors evaluate it relative to the single statement rather than the entire suite of financial statements. Thus, while overall materiality plays a role in audits of complete financial statements, it is less likely to be a primary consideration for a single financial statement report.