Which of the following is not true with respect to the performance principle? Multiple Choice The preparation of an audit plan is an important component of the planning and supervision in an audit. The concept of materiality recognizes that auditors should focus on matters that are important to financial statement users. The risk of material misstatement is affected by both the susceptibility of the account balance to misstatement as well as the effectiveness of the auditor’s procedures in detecting misstatements. The concept of reasonable assurance permits audit teams to make mistakes and misinterpretations in evaluating evidence.