Audit standards require the auditor to consider materiality early in the audit. Which statement(s) regarding preliminary materiality is (are) true?
| I. | Preliminary materiality may change during the engagement. |
| II. | Preliminary materiality is the maximum amount by which the auditor believes the financials could be misstated and still not affect the decisions of reasonable users.
▸ I only
▸ II only
▸ both I and II
▸ neither I nor II
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