Which Statement Is True Concerning Materiality

question 45

Multiple Choice

Which statement is true concerning materiality?

• A)Misstatements are material if they could reasonably be expected to influence the decisions of users of the financial statements.
• B)Materiality guidelines are specifically prescribed by the PCAOB.
• C)Materiality is not a useful concept in assessing internal control effectiveness.
• D)Materiality is a concept applied to financial statement presentation but not to disclosures.

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Definitions:

Skeletal Muscle

A type of muscle that is connected to bones and is responsible for voluntary movements of the body.

Quadriplegic

A condition where an individual experiences paralysis in all four limbs, typically resulting from injury or disease affecting the spinal cord.

Joint Contracture

A permanent shortening of a joint and soft tissues, leading to restricted movement and flexibility.

Center of Gravity

The point within an object or body where the gravitational force can be considered to act, crucial in matters of stability and balance.