Which of the Following Would Not Be a Reason to Lower

question 89

Multiple Choice

Which of the following would not be a reason to lower the threshold for materiality?

• A) The auditor is concerned with potential violations of debt covenants.
• B) There were proposed adjusting entries to a particular account in prior years.
• C) The consequences of a potential misstatement in an account balance are very high.
• D) The audit team wants to limit the amount of time spent at the client's facilities.

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Definitions:

Communication Tolerance Level

The degree to which an individual or group is willing to accept and adapt to differences in communication styles and content.

Personal Traits

Innate characteristics or qualities that define an individual's personality and behavior.

Objection

A statement or assertion expressing disapproval or opposition.

Salespeople

Individuals who sell products or services to customers, often working on commissions and employing various techniques to meet sales targets.