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.

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Definitions:

Anterograde Amnesia

The loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or complete inability to recall the recent past, while long-term memories from before the event remain intact.

Déjà Vu

A peculiar experience of feeling that one has already witnessed or experienced a current situation, despite it being novel.

Proactive Interference

The process by which previous memories obstruct the remembrance of newer ones.

Positive Transfer

The beneficial effect of past learning on the acquisition of new knowledge or skills.