Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. materiality in auditing: materiality is a fundamen

Materiality in Auditing: Materiality is a fundamental concept in auditing that refers to the...

90.2K

Verified Solution

Question

Accounting

Materiality in Auditing:
Materiality is a fundamental concept in auditing that refers to the significance or importance of an item, transaction, or error in the financial statements. It is a matter of professional judgment for auditors to determine whether a particular misstatement, individually or collectively, could influence the economic decisions of users of the financial statements. Materiality depends on both the size and nature of the item or error, as well as its relevance to the financial statements as a whole.
Objective Type Question:
Which of the following best defines materiality in auditing?
A) The process of preparing financial statements
B) The significance or importance of an item in the financial statements
C) The final audit opinion rendered by auditors
D) The detailed testing of transactions conducted by auditors
Choose the correct option that defines materiality in auditing.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Operations Management
1.2K views

What’s the best strategy you would recommend an organization use to avoid making this mistake in...

Chemistry
1.2K views

When 10.0 mL of 1.00 M AgNO3 solution is added to 10.0 mL of 1.00 M...

Biology
1.2K views

(a) Does the mother with the wrong embryos have the right to have an abortion (Roe...

Psychology
1.2K views

What is the importance of ritual purity before ibadat (acts of worship)? Muhammad is reported to...

Psychology
1.2K views

QUESTION 12 The sociologist \"_________________________ _________________\" believed that as the United States continued to modernize, urbanize, and industrialize,...

Advance Math
1.2K views

5. Of the 9-letter passwords formed by rearranging the letters AAAABBCCC (4 A’s, 2 B’s, and...

Biology
1.2K views

Which of the following describes a pair of oxidation and reduction reactions during cellular respiration...

Physics
1.2K views

A dipole with electric dipole moment P is at distance r from a long thread...

Physics
1.2K views

14 A child AB is star straight plane mirror fixed to a vertical wall His...

Geometry
1.2K views

1 Solve for the value of y below to the nearest CI 11 en Xar...

Algebra
1.2K views

Are the following statements true or false? If true, prove the statement. If false, give...

Accounting
1.2K views

Regarding the Federal Trade Commission's (FTC's) penalties or remedies, which of the following statements is...