The Primary Concern in Measuring Materiality When a Client Has

question 74

Multiple Choice

The primary concern in measuring materiality when a client has failed to follow an accounting standard is usually:

• A) whether it can materially affect some future period.
• B) the total dollar error in the accounts involved, compared with some base.
• C) the nature of the item in error.
• D) measurability of the dollar error.

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Definitions:

Decision Maker

A person or group that has the authority to make choices and decisions within an organization, influencing its direction and strategies.

Supervision Levels

The hierarchical levels within an organization's management structure that oversee and direct the work of others.

Possessing Information

Involves having knowledge, facts, or data about a specific subject matter or situation.

Appearing Knowledgeable

The act of presenting oneself as well-informed and intelligent in a specific area, regardless of one's actual level of expertise.