Which of the Following Statements Is Not True Regarding the Use

question 100

Multiple Choice

Which of the following statements is not true regarding the use of a judgmental approach by auditors in determining whether a misstatement is clearly trivial?

• A) The determination is based on past auditor experience.
• B) The determination is usually not very defensible to third-party users.
• C) The determination is usually not very defensible to regulators.
• D) The determination uses percentages for the likelihood of misstatement.

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Definitions:

Routine Problem Solving

Routine problem solving involves addressing and resolving common or regularly occurring issues using established methods or procedures.

Low-involvement Decision Making

A consumer behavior characterized by limited research and consideration because the product is perceived as low risk.

Consumer Purchase Decision Process

Describes the stages a consumer goes through before, during, and after making a purchase, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Extended Problem Solving

A consumer decision-making process used for high-involvement purchase decisions, involving extensive information search and evaluation of alternatives.