Which of the Following Statements Is NOT Correct

question 14

Multiple Choice

Which of the following statements is NOT correct?

• A) Materiality is a relative rather than an absolute concept.
• B) Given equal dollar amounts, fraud is usually considered more important than errors.
• C) Normally, the most important base used as the criterion for deciding materiality is total assets.
• D) Qualitative factors as well as quantitative factors affect materiality.

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Definitions:

Outsources

Outsourcing involves contracting out certain business processes or tasks to external providers, often to reduce costs and improve efficiency.

Competency

A combination of skills, knowledge, and behavior that contributes to an individual's ability to perform tasks effectively.

Headcount

The total number of individuals employed by an organization, including all full-time and part-time staff.

Head Office

The primary office or headquarters where the key administrative activities of an organization are conducted.