Misstatements Are Usually Considered Material If

question 104

Multiple Choice

Misstatements are usually considered material if:

• A) the combined uncorrected errors in the financial statements are likely to have changed or influenced the decisions of a reasonable person using the financial statements.
• B) the auditor has quantified a measure of materiality.
• C) the combined uncorrected errors and fraud in the financial statements are likely to have changed or influenced the decisions of a reasonable person using the financial statements.
• D) none of the above

---

Definitions:

Hemoglobin

The oxygen-carrying pigment and protein in the red blood cells.

Prothrombin

A protein in blood plasma that is the precursor to thrombin and plays a key role in blood clotting.

Antibody

A protein produced by the immune system that recognizes and binds to foreign substances, such as bacteria and viruses, to help in their destruction.

Antigen

A substance that provokes an immune response, leading to the production of antibodies.