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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