Which of These Factors Could Not Be the Cause of a Material

question 26

Multiple Choice

Which of these factors could not be the cause of a material misstatement?

• A)Selection of inappropriate accounting policies.
• B)Inadequate disclosure.
• C)Disagreement with those charged with governance in relation to the financial statements.
• D)None of the above, i.e.all could be the cause of material misstatement.

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Definitions:

Basic Needs

Fundamental requirements that support human survival and well-being, including food, shelter, clothing, healthcare, and education.

Entitlement Programs

Government programs such as social insurance, Medicare, and Medicaid that guarantee (entitle) particular levels of transfer payments or noncash benefits to all who fit the programs’ criteria.

Social Insurance Programs

Government schemes designed to provide financial assistance to individuals during events like unemployment, disability, or retirement.

Poverty Line

A specified threshold below which individuals or families are considered to be living in poverty, based on income level.