Options when Projected Errors Exceed Materiality Record an adjustment Usually limited to actual errors Perform more testing Better error estimate Lower sampling risk Qualify opinion Arens, Loebbecke: Aua @2000 Prentice hall.IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Options When Projected Errors Exceed Materiality • Record an adjustment - Usually limited to actual errors • Perform more testing - Better error estimate - Lower sampling risk • Qualify opinion