Which of the Following Statements Is Correct Concerning Materiality in a Financial

question 134

Multiple Choice

Which of the following statements is correct concerning materiality in a financial statement audit?

• A) Analytical procedures performed during an audit's review stage usually decrease materiality levels.
• B) If the materiality amount used in evaluating audit findings increases from the amount used in planning, the auditor should apply additional substantive tests.
• C) The auditor's materiality judgments generally involve quantitative, but not qualitative, considerations.
• D) Materiality levels are generally considered in terms of the smallest aggregate level of misstatement that could be considered material to any one of the financial statements.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for response to stress or emergency situations by increasing heart rate, blood flow, and releasing adrenaline.

Physiological Effects

The changes or responses within the body resulting from external or internal stimuli, affecting its normal physical functions.

Emotions

are complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.

Personal Space

An individual's physical area surrounding them in which encroachment can feel uncomfortable or threatening.