During the Audit of XYZ Ltd the Auditor Found a Misstatement

question 27

Multiple Choice

During the audit of XYZ Ltd the auditor found a misstatement that equated to 7% of the base amount.Based on historical practice, this amount is deemed to be:

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

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Definitions:

Attachment

The point at which a creditor becomes the secured party that has a security interest in the collateral.

Secured Party

A lender or creditor who has an interest, typically a lien, in the collateral offered by the debtor in a secured transaction.

Collateral

Assets that a borrower offers to a lender to secure a loan, which the lender may seize in the event of loan default.

Intangibles

Assets that lack physical form but have value, such as intellectual property or goodwill.