Which of the Following Statements Is Not True Regarding the Use

question 100

Multiple Choice

Which of the following statements is not true regarding the use of a judgmental approach by auditors in determining whether a misstatement is clearly trivial?

• A) The determination is based on past auditor experience.
• B) The determination is usually not very defensible to third-party users.
• C) The determination is usually not very defensible to regulators.
• D) The determination uses percentages for the likelihood of misstatement.

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Definitions:

Tort

A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Compensable Damages

Monetary compensation awarded to a party for losses or injuries that can be quantified financially.

Public Figure Privilege

A special right, immunity, or permission given to people that allows them to make any statements about public figures, typically politicians and entertainers, without being held liable for defamation for any false statement made without malice.

Politicians

Individuals who are actively involved in politics, especially as elected representatives.