Which One of the Following Statements Does NOT Apply to the Preliminary

question 75

Multiple Choice

Which one of the following statements does NOT apply to the preliminary assessment of materiality?

• A) It is the maximum amount by which the auditor believes the statements could be misstated and still NOT affect the decisions of reasonable users.
• B) It is a matter of auditor judgement.
• C) It is a professional opinion, and it may NOT change during the engagement.
• D) Auditors decide on the combined amount of misstatements in the financial statements that they would consider material early in the audit, when they are developing the overall strategy for the audit.

---

Definitions:

Critical Thinking

The analysis and evaluation of an issue in order to form a judgment.

Tacit Knowledge

The kind of knowledge that is difficult to transfer to another person by writing it down or verbalizing it.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using knowledge.

Standardized IQ Tests

Tests designed to measure intelligence in a consistent and uniform manner across different populations, allowing for the comparison of intellectual abilities.