Which of the Following Statements Is Usually True

question 35

Multiple Choice

Which of the following statements is usually true?

• A) Materiality is easy to quantify.
• B) Fraudulent financial statements are often easy for the auditor to detect, especially when there is collusion among management.
• C) Reasonable assurance is a low level of assurance that the financial statements are free from material misstatement.
• D) An item is considered material if it would likely have changed or influenced the decisions of a reasonable person using the statements.

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Definitions:

Periosteum

The periosteum is a thick layer of blood-rich connective tissue surrounding the bones, excluding the joint areas.

Trabeculae

A network of supporting fibrous or muscular strands in organs, notably seen in the structure of spongy bone and certain organs like the spleen.

Spongy Bone

Spongy bone, also known as cancellous bone, is a porous type of bone found at the ends of long bones and in the inner layers of short, flat, and irregular bones, characterized by a lattice-like structure of trabeculae.

Compact Bone

Dense, hard tissue that forms the outer layer of bones, providing strength, structure, and the ability to withstand stresses.