Information Is Considered Qualitatively Material If It _______

question 145

Multiple Choice

Information is considered qualitatively material if it _______.

• A)affects a user's decision-making process for a reason other than its magnitude
• B)exceeds the dollar magnitude of an auditor's planning materiality assessment
• C)can be presented as a percentage of net income
• D)includes liquidity ratios of interest to bond holders

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Definitions:

Administrative Agencies

Entities created by the government to enforce laws, regulations, and perform public services.

Freedom of Information Act

A federal law that allows for the full or partial disclosure of previously unreleased information and documents controlled by the United States government.

Subpoena Duces Tecum

A legal order requiring a person to produce documents or records for a court case.

Federal Income Tax Returns

Mandatory yearly filings to the Internal Revenue Service (IRS) by individuals and entities to report their income, calculate taxes owed, and report taxes paid during the tax year.