Which of the Following Is NOT a Qualitative Factor When

question 54

Multiple Choice

Which of the following is NOT a qualitative factor when assessing materiality?

• A) A misstatement that changes a loss into income or vice versa
• B) The existence of statutory or regulator reporting requirements that affect materiality thresholds
• C) The potential effect of the misstatement on trends, especially trends in profitability
• D) The use of simplistic numerical thresholds and rules of thumb

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Definitions:

Attribution Theory

A psychological framework for understanding how individuals infer the causes of others' behavior, whether attributing it to internal dispositions or to external situations.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.

Behavioral Perspective

An approach in psychology focusing on how external environmental stimuli influence observable behavior, often ignoring internal mental states.

Foot-In-The-Door Technique

A persuasion strategy that involves getting a person to agree to a small request to increase the chances they will agree to a larger request later.