Which of the Following Is Not a Factor Adding to the Complexity

question 77

Multiple Choice

Which of the following is not a factor adding to the complexity of materiality judgments made by auditors?

• A) Regulators pay particular attention to the judgmental aspects of auditor materiality decisions.
• B) SEC regulators do not believe it is appropriate to use percentage terms to substitute for a full analysis of all relevant considerations regarding the magnitude of misstatement.
• C) Regulators focus on how materiality decisions can affect client financial results.
• D) SEC regulators have few requirements for auditors to comply with since the AICPA fills that role.

---

Definitions:

Drivers Lease Company

A concept that might refer to businesses offering lease agreements for vehicles, specifically targeting drivers for personal or commercial use, though "Drivers Lease Company" as a specific term may not be widely recognized.

Oceangoing Vessel

A ship designed and equipped to travel across oceans.

Merchant's Firm Offer

A legal concept in commercial law where a merchant offers to sell goods in a written and signed promise that the offer will remain open and cannot be revoked for a certain period of time.

Lease

A contractual agreement by which one party conveys property, land, or services to another for a specified time, usually in return for a periodic payment.