Which of the Following Statements Is False Regarding Materiality Judgments

question 67

Multiple Choice

Which of the following statements is false regarding materiality judgments?

• A) Materiality judgments are a matter of professional judgment.
• B) Materiality judgments depend on the needs of a reasonable person (an investor, potential investor, or other stakeholder) relying on the information.
• C) Materiality judgments involve both quantitative and qualitative considerations.
• D) Materiality judgments are easy for auditors to make.

---

Definitions:

Schizophrenia

A chronic brain disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Associative Looseness

A thought disorder characterized by a series of ideas that are connected in an unclear or illogical manner.

Negative Symptom

In the context of psychiatric disorders, a symptom characterized by the absence or diminution of normal behaviors or emotions, such as lack of motivation or social withdrawal.

Schizophrenia

A complex, long-term medical disorder involving a range of symptoms, including delusions, hallucinations, troubled thinking, and concentration, affecting an individual's ability to discern reality.