If $15,000 Is Considered to Be Material to the Income

question 67

Multiple Choice

If $15,000 is considered to be material to the income statement,but $25,000 is material to the balance sheet,the auditor should set overall materiality at which of the following dollar amounts?

• A)$20,000
• B)$25,000
• C)$40,000
• D)$15,000

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Definitions:

Scientific Validity

The extent to which research or experiments accurately reflect and test what they aim to measure, ensuring reliability and accuracy in findings.

Psychoanalysis

A therapeutic approach, originated by Sigmund Freud, which seeks to explore unconscious motivations and conflicts through techniques like free association and dream analysis.

Freudian Idea

Concepts originated by Sigmund Freud that emphasize the role of unconscious processes in shaping feelings, thoughts, and behaviors.

Verbal "Freudian" Slips

Involuntary mistakes in speech believed to reveal subconscious thoughts or feelings, drawing from Freud's psychoanalytic theory.