Which of the following statements is
incorrect about materiality?
a. The concept of materiality recognizes
that some matters are important for fair
presentation of financial statements in
conformity with GAAP, while other
matters are not important.
b. An auditor considers materiality for
planning purposes in terms of the
largest aggregate level of
misstatements that could be
material to any one of the financial
statements.
c. Materiality judgments are made in light
of surrounding circumstances and
necessarily involve both quantitative and
qualitative judgments.
d. An auditor’s consideration of materiality
is influenced by the auditor’s perception
of the needs of a reasonable person who
will rely on the financial statements
incorrect about materiality?
a. The concept of materiality recognizes
that some matters are important for fair
presentation of financial statements in
conformity with GAAP, while other
matters are not important.
b. An auditor considers materiality for
planning purposes in terms of the
largest aggregate level of
misstatements that could be
material to any one of the financial
statements.
c. Materiality judgments are made in light
of surrounding circumstances and
necessarily involve both quantitative and
qualitative judgments.
d. An auditor’s consideration of materiality
is influenced by the auditor’s perception
of the needs of a reasonable person who
will rely on the financial statements