Which of the Following Statements Is False Regarding Materiality Judgments

question 67

Multiple Choice

Which of the following statements is false regarding materiality judgments?

• A) Materiality judgments are a matter of professional judgment.
• B) Materiality judgments depend on the needs of a reasonable person (an investor, potential investor, or other stakeholder) relying on the information.
• C) Materiality judgments involve both quantitative and qualitative considerations.
• D) Materiality judgments are easy for auditors to make.

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Definitions:

Logical Order

A sequence that follows a systematic principle, allowing for coherent and understandable organization of ideas or elements.

Organization

A structured arrangement of people and resources designed to achieve specific goals and objectives.

Reader's Needs

The specific requirements or expectations of the audience that influence how written content should be tailored to ensure engagement and comprehension.

Lists

A series of items or elements organized in a sequential or thematic order.