The Auditors Have Decided Upon a Materiality Level of $100

question 38

Multiple Choice

The auditors have decided upon a materiality level of $100 000 for their audit of ABC Manufacturing.Which one of the following errors would be considered more important by the auditors?

• A)an error in accounts receivable cutoff of $50 000
• B)an overstatement of accounts payable by $15 000
• C)an error in allocation between accounts receivable and accounts payable by $75 000
• D)an illegal payment of $15 000

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Definitions:

Identify Feelings

The process of recognizing and naming one's own emotional states.

Optimistic

A mindset or attitude characterized by the expectation of positive outcomes.

Problems

Problems are obstacles or challenges that need to be resolved or overcome through the application of strategies and solutions.

Emotional Intelligence

The ability of individuals to recognize, understand, manage, and use their own emotions as well as the emotions of others effectively.