The Purpose of Allocating Planning Materiality to Balance Sheet Accounts

question 8

Multiple Choice

The purpose of allocating planning materiality to balance sheet accounts is to

• A)assess the appropriate evidence to accumulate for each account on the balance sheet.
• B)assess the appropriate evidence to accumulate for each account on both the balance sheet and income statement.
• C)reduce the amount of procedures done in the course of the audit.
• D)increase the possibility that fraud or illegal activities would be detected by audit procedures.

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Definitions:

Kyphosis

A spinal disorder causing an excessive outward curve of the spine, leading to a hunchback or slouching posture.

Scoliosis

A medical condition characterized by an abnormal lateral curvature of the spine, which can vary in severity.

Foramen Magnum

The large hole in the occipital bone that allows the brain to connect to the spinal cord.

Occipital Bone

The trapezoidal-shaped bone at the lower back part of the skull, forming the back and base of the cranium and containing the foramen magnum.