Misstatements Are Usually Considered Material If The

question 75

Multiple Choice

Misstatements are usually considered material if the:

• A) combined uncorrected errors in the financial statements are likely to have changed or influenced the decisions of a reasonable person using the financial statements.
• B) auditor has quantified a measure of materiality.
• C) combined uncorrected errors and fraud in the financial statements are likely to have changed or influenced the decisions of a reasonable person using the financial statements.
• D) none of the above

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Definitions:

Manufacturing Wage Rates

The amount of remuneration or earnings per unit of time by workers in the manufacturing sector.

College Graduate

An individual who has successfully completed a degree program at a college or university.

High School Graduate

An individual who has successfully completed the course of study at a high school, receiving a diploma or certification.

Minimum Wage Rate

The lowest legal wage that can be paid to most workers, set by law to protect workers from exploitation.