Which of the Following Would Not Be a Reason to Lower

question 89

Multiple Choice

Which of the following would not be a reason to lower the threshold for materiality?

• A) The auditor is concerned with potential violations of debt covenants.
• B) There were proposed adjusting entries to a particular account in prior years.
• C) The consequences of a potential misstatement in an account balance are very high.
• D) The audit team wants to limit the amount of time spent at the client's facilities.

---

Definitions:

Accurately Perceive Emotions

The ability to correctly identify and understand one's own emotions as well as those of others.

Analyze Emotions

The process of examining and understanding one's own feelings or the emotional content of a situation.

Regulate Emotions

The process of recognizing, understanding, and managing one's own emotions to achieve a goal or maintain well-being.

Creatively Think

The process of generating innovative ideas and solutions through imaginative and unconventional thinking.