When Conducting a Review Engagement,how Is Materiality Calculated

question 21

Multiple Choice

When conducting a review engagement,how is materiality calculated?

• A)materiality is not calculated as a lower level of assurance is being provided
• B)the concept of significance is used,rather than the concept of materiality
• C)always as a percentage of net income before income taxes
• D)in the same manner as an audit engagement

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Definitions:

Management By Exception

A leadership strategy where managers intervene only when performance deviates significantly from standards.

Charisma

a magnetic personality trait or quality that can inspire enthusiasm and devotion in others, often leading to influential leadership.

Relations-oriented Leadership

A leadership approach that emphasizes building strong interpersonal connections, prioritizing team cohesion and individual well-being within the group.

Employee-centered Behavior

A management approach that places emphasis on the welfare, needs, and involvement of employees, rather than solely focusing on productivity and efficiency.