Which of the Following Will the Auditor Will Not Consider

question 28

Multiple Choice

Which of the following will the auditor will not consider when making a materiality determination?

• A) Potential default on loan covenants.
• B) Changes in segment earnings or trends in earnings.
• C) Factors that would affect the market's perception of future growth and cash flow for the company.
• D) All of these insights would be considered.

---

Definitions:

Cell Phone Users

Individuals who utilize mobile phones for communication, internet access, applications, and other functions.

Minutes

A unit of time equal to one-sixtieth of an hour or sixty seconds, commonly used to measure duration.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a particular test, used as a starting point for experimentation.

Alternative Hypothesis

A hypothesis that suggests there is a difference between two or more sets of data, contrasting the null hypothesis.