The Use of Performance Materiality Should

question 24

Multiple Choice

The use of performance materiality should:

• A)reduce the probability that the sum of immaterial and/or undetected misstatements in the financial statements is greater than materiality for the financial statements as a whole.
• B)increase the probability that the sum of immaterial and/or undetected misstatements in the financial statements is greater than materiality for the financial statements as a whole.
• C)reduce the probability that the sum of immaterial and/or undetected misstatements in the financial statements is less than materiality for the financial statements as a whole.
• D)increase the probability that the sum of immaterial and/or undetected misstatements in the financial statements is less than materiality for the financial statements as a whole.

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Definitions:

Intergenerational Relationships

Relationships between persons of different generations, often involving family ties or mentorship, that reflect the transfer of knowledge, customs, and values.

Intimate

Characterized by a close, familiar, and usually affectionate or loving personal relationship.

Turbulent

Characterized by disorder, confusion, or agitation; often used to describe situations, relationships, or environments that are chaotic or unstable.

Self-disclosures

The act of revealing personal, private, or sensitive information about oneself to others.