ExpertHard1 markMultiple Choice
CPA · Question 71 · Area III: SOC Engagements
In planning a SOC 2 engagement, the auditor must assess 'Materiality'. How is materiality typically viewed in a SOC 2 compared to a financial audit?
In planning a SOC 2 engagement, the auditor must assess 'Materiality'. How is materiality typically viewed in a SOC 2 compared to a financial audit?
Answer options:
A.
It is purely quantitative (dollar amount).
B.
It is qualitative, focusing on whether a deficiency could affect the user's decision-making regarding the service.
C.
Materiality does not apply to SOC 2.
D.
It is based on the service organization's revenue.
How to approach this question
SOC 2 is about trust/operations, not dollars.
Full Answer
B.It is qualitative, focusing on whether a deficiency could affect the user's decision-making regarding the service.✓ Correct
In SOC 2, materiality is about the significance of a control failure to the achievement of the Trust Services Criteria. It's often qualitative (e.g., 'Does this expose data?') rather than a dollar threshold.
Common mistakes
Applying financial audit materiality (dollars) to SOC 2.
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