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| Which of the following statements is not correct regarding the auditors determination of materiality? |
A. It is the smallest amount of misstatement that would probably influence the judgment of a reasonable person relying upon the financial statements.
B. Auditing standards require auditors to consider materiality in planning the audit.
C.The planning level of materiality will normally be the larger of the amount considered for the balance sheet versus the income statement.
D. The appropriate financial statement base for computing materiality may vary based on the nature of the client's business.
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