The Concept of Materiality Refers To

question 29

Multiple Choice

The concept of materiality refers to:

• A)Any misstatement in the financial statements.
• B)The overall degree of risk in an organization.
• C)An amount of misstatement that could lead someone to make a poor decision and suffer a loss.
• D)An amount of risk in an organization sufficient to offset the expected returns of any investment in the company.

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Definitions:

Attentiveness

The quality of paying close and continuous attention to something or someone.

Younger Infants

Infants typically ranging from birth to 12 months old, during which rapid physical and cognitive development occurs.

Older Infants

Infants typically between the ages of 9 to 12 months who are developing new skills such as crawling, standing, or beginning to walk.

Habituate

The process of becoming accustomed to a stimulus over time, leading to a decrease in one's response to that stimulus.