Which of the Following Statements About Materiality Is Not Correct

question 10

Multiple Choice

Which of the following statements about materiality is not correct?

• A)An item must make a difference or it need not be disclosed.
• B)Materiality is a matter of relative size or importance.
• C)An item is material if its inclusion or omission would influence or change the judgement of a reasonable person.
• D)All of these are correct statements about materiality.

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Definitions:

Decision Makers

Individuals or entities responsible for making choices that determine the course of actions.

Accountability

The obligation to explain, justify, and take responsibility for one’s actions in a professional or personal context, often within the structure of an organization or public service.

Qualifications

The credentials, education, skills, and experience that make an individual suitable for a specific job or task.

Stereotype

An extensively accepted yet uncomplicated and unchanging notion or representation of a specific sort of individual or thing.