Which of the Following Will the Auditor Will Not Consider

question 28

Multiple Choice

Which of the following will the auditor will not consider when making a materiality determination?

• A) Potential default on loan covenants.
• B) Changes in segment earnings or trends in earnings.
• C) Factors that would affect the market's perception of future growth and cash flow for the company.
• D) All of these insights would be considered.

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Definitions:

Exports

Items or services transferred from one country to another for commerce or trading.

Imports

Goods and services brought into a country from abroad for sale.

Trade Deficit

It occurs when a country's imports exceed its exports over a certain period, leading to more money leaving the country than entering it.

High Tariffs

Elevated taxes imposed on imported goods to protect domestic industries by making foreign products more expensive compared to local products.