Which of the Following Statements Is Not True About Materiality

question 41

Multiple Choice

Which of the following statements is not true about materiality judgments?

• A) The auditor's consideration of materiality is influenced by the auditor's perception of the needs of users of financial statements.
• B) The auditor considers materiality only in relation to classes of transactions, account balances, and disclosures.
• C) Materiality judgments are used to help the auditor gather sufficient appropriate evidence about whether the financial statements are free of material misstatement.
• D) Materiality decisions differ from one audit client to another.

---

Definitions:

Seeking Information

The process of actively looking for or obtaining data, knowledge, or answers from various sources.

Task Functions

Actions and activities that are necessary for achieving a group's objectives or completing its tasks.

Multicultural Groups

Consist of individuals from a variety of cultural backgrounds, allowing for diverse perspectives and approaches within a group.

Ethnic Backgrounds

Refers to the heritage, nationality group, lineage, or country of birth of the person or the person's ancestors before their arrival in the United States.