Which of the Following Is Not a Consideration in Determining

question 42

Multiple Choice

Which of the following is not a consideration in determining a measure of materiality?

• A) Risks of material misstatements due to fraud
• B) Quantitative assessment of the importance of the difference of opinion with client management on an accounting issues
• C) Qualitative assessment of the importance of the difference of opinion with client management on an accounting issues
• D) Importance of audit committee in the organization

---

Definitions:

Excess Reserves

The funds that commercial banks hold in their reserves over and above the regulatory requirement set by the central bank.

Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not loan out, as mandated by central banking authorities.

Percent

A term used to describe one hundredth of a whole; a way to express fractions, amounts, or changes in quantities in terms of hundredths.

Reserve Requirement

A regulation that sets the minimum amount of reserves a bank must hold against deposits, used as a tool to control banking stability and money supply.