Which of the Following Statements About the Materiality Concept Is

question 34

Multiple Choice

Which of the following statements about the materiality concept is not true?

• A)Materiality is different for each company.
• B)A material error would change the opinion of the average prudent investor.
• C)Any error greater than $5,000 is considered material in a financial statement audit.
• D)Material misstatements should not exist in order for a company to receive an unqualified audit opinion.

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Definitions:

Psychological Well-being

An individual's overall mental health and life satisfaction, encompassing emotional, psychological, and social aspects.

Intentionally Deceives

Deliberately misleading or causing someone to believe something that is not true, often for personal gain or advantage.

Lying By Commission

The act of intentionally providing false information or statements.

Intuitive Style

A way of decision-making or problem-solving based on instinctual feeling rather than analytical reasoning.