When Allocating Performance Materiality

question 87

Multiple Choice

When allocating performance materiality:

• A)it is easy to predict in advance which accounts are mot likely to be misstated.
• B)only overstatements need to be considered.
• C)professional judgment is critical.
• D)the sum of all the performance materiality levels cannot exceed the preliminary judgment about materiality.

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Definitions:

Economics

The social science concerned with the production, distribution, and consumption of goods and services.

Sociology

The study of the development, structure, and functioning of human society.

Time

A dimension in which events can occur in sequence from the past through the present to the future, also a critical element in economic models affecting production, consumption, and investments.

Economics

The social science that studies how individuals, governments, and nations make choices on allocating resources to satisfy their wants and needs.