When Dealing with Materiality

question 51

Multiple Choice

When dealing with materiality,

• A)if the client refuses to correct a material misstatement,the auditor is required to adjust the financial statements.
• B)management is responsible for determining whether financial statements are materially misstated.
• C)materiality must be determined as as percentage of sales.
• D)the auditor must bring any material misstatements to the client's attention.

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Definitions:

Decision Control

The extent to which individuals have the power or autonomy to make choices and decisions regarding aspects of their life or work, influencing their sense of control and satisfaction.

Occupational Stress

The physical and emotional stress experienced due to pressures and demands at one's place of work.

Robert Karasek

A researcher known for his contribution to occupational health psychology, notably the demand-control model of work stress.

Decision-Making

The cognitive process of selecting a course of action from among multiple alternatives.