During the Audit of XYZ Ltd the Auditor Found a Misstatement

question 22

Multiple Choice

During the audit of XYZ Ltd the auditor found a misstatement that equated to 7% of the base amount. According to the guidelines provided by AASB 1031.this amount is deemed to be:

• A) material.
• B) not material.
• C) a matter of professional judgement whether it is considered material.
• D) none of the above.

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Definitions:

Nonlabor Resources

Assets or inputs in production that are not related to direct human labor, such as machinery, raw materials, and land.

Total Product

The total quantity of output produced by a firm or economy, encompassing all goods and services.

Nonlabor Resources

Inputs in production that do not involve human labor, such as capital, land, and natural resources.

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, holding other inputs constant.