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:

Liability Coverage

Insurance protection against claims resulting from injuries and damage to people and/or property.

Insured

A person or entity covered under an insurance policy to receive compensation for losses or damages.

Insurable Interest

The stake in the value of an item, life, or event for which an insurance policy is purchased to mitigate the risk of loss.

Creditor

An individual or entity to whom money is owed by a debtor.