Allocating the Preliminary Judgement About Materiality to Segments of the Financial

question 97

Multiple Choice

Allocating the preliminary judgement about materiality to segments of the financial statements is necessary because:

• A) evidence is accumulated for the financial statements as a whole so the materiality doesn't apply to them.
• B) it is required by the Code of Professional Conduct.
• C) it is required by the Corporations Act.
• D) evidence is accumulated by segments rather than for the financial statements as a whole.

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Definitions:

Phonological Loop

A component of working memory responsible for the temporary storage and manipulation of verbal and auditory information.

Working Memory

A form of short-term memory that involves the temporary holding, processing, and manipulation of information for cognitive tasks.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period.

Context-Dependent Memory

The principle that recall of information is easier when in the same context or environment where the memory was originally formed.