An Item with a "Psychic" Effect (E

question 102

True/False

An item with a "psychic" effect (e.g., where the item maintains an increasing earnings trend)is a qualitative factor that may affect the auditors decision regarding materiality.

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Definitions:

Past Business Contracts

Previous agreements or legal obligations between parties in a business context.

Customers

Individuals or organizations that purchase goods or services from a company.

Location

The physical place where a business is situated, which can significantly impact its success due to factors such as accessibility, market presence, and competition.

Business Valuation

The process of determining the overall economic value of a business entity, considering factors such as market conditions, assets, liabilities, and earning potential.