Which of the Following Is a Correct Statement Regarding Materiality

question 78

Multiple Choice

Which of the following is a correct statement regarding materiality?

• A) There are well-defined guidelines that enable auditors to determine if something is material.
• B) Misstatements must be compared with some benchmark before a decision can be made about the materiality level of the failure of a company to follow GAAP.
• C) Pervasiveness is not considered when comparing potential misstatements with a base or benchmark.
• D) To evaluate overall materiality, the auditor does not combine all unadjusted misstatements.

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Definitions:

Wireframes

Schematic blueprints that represent the skeletal framework of digital applications, designed to plan a website or app's structure and functionality.

Tester

An individual or device that assesses a product, software, or material for its performance, quality, or compliance with specific standards or criteria.

Agile Development

A methodology in software development focusing on iterative progress, collaboration, and adapting to change.

Waterfall Model

A sequential design process often used in software development, where progress is seen as flowing steadily downwards through phases such as conception, initiation, analysis, design, construction, testing, and maintenance.