Which of the Following Statements Is Not True About Materiality

question 41

Multiple Choice

Which of the following statements is not true about materiality judgments?

• A) The auditor's consideration of materiality is influenced by the auditor's perception of the needs of users of financial statements.
• B) The auditor considers materiality only in relation to classes of transactions, account balances, and disclosures.
• C) Materiality judgments are used to help the auditor gather sufficient appropriate evidence about whether the financial statements are free of material misstatement.
• D) Materiality decisions differ from one audit client to another.

---

Definitions:

Business Acquaintance

A professional contact or relationship that is typically formed through networking or business interactions, which can be beneficial for career opportunities or advice.

Customer Relationship Marketing

A strategic approach focusing on cultivating long-term, engaging relationships with customers to foster loyalty and repeat business.

Account Penetration

A sales and marketing strategy aimed at increasing the depth and range of products or services sold to an existing customer account.

Partnering/Consultative Selling

A sales approach where the salesperson acts as a partner, focusing on understanding and meeting the customer's needs rather than just selling products.